Mercedes to Build Battery Plant in Poland

Daimler AG’s Mercedes-Benz unit plans to construct a battery assembly plant at its site in Jawor, Poland, with production due to begin there early next decade.

The facility will be Mercedes’ ninth battery plant, joining five current and planned sites in Germany and one each in China, Thailand and the U.S. The company is investing €1 billion ($1.1 billion) in the network.

Mercedes buys cells from outside suppliers, then assembles them into battery packs at its own factories. The carmaker plans to offer more than 130 electrified vehicle variants in coming years, including 10 full EVs by 2020.

In 2016, Daimler announced plans to build an engine plant in Jawor. That facility, which is due to ramp up production this year, will provide 4-cylinder engines for a range of hybrid and conventionally powered vehicles worldwide.

The engine plant will employ 1,000 people, while the battery facility will add 300 jobs. Both plants will use energy from carbon-neutral sources, according to the carmaker. Daimler says it plans to make additional unspecified investments in Poland later.