A camouflaged prototype of the new Mercedes-Benz EQS Electric SUV

The German carmaker, which aims to go fully electric by the end of the decade, will make lithium-ion batteries at the new Bibb County plant and also start producing its all-electric EQS and EQE models at its existing factory there, it said Tuesday.

In preparations for the production launch of the EQS SUV and EQE SUV, Mercedes-Benz has opened a new battery factory in the United States. Located in Bibb County, Alabama, the plant will produce the batteries for the two large electric vehicles in a CO2-neutral process on a production line around 984-feet (300-meter) long with more than 70 work stations. Up to 600 new jobs will be created in the Bibb County region.

Mercedes has invested more than $7 billion in Alabama since the 1990s and the new battery plant required a $1 billion investment. The automaker plans to go fully electric by the end of the decade and will introduce nine fully electric EQ models.

This new investment is part of the automaker's plan to go fully electric by the end of the decade. To accomplish that in the planned time frame–along with the help of partners–the company says it aims to build a total of eight battery factories around the world with a total production capacity of 200 gigawatt-hours. The company also plans to localize suppliers in the U.S. by continuing to grow collaboration efforts with the top battery-technology companies in the world.

“The opening of our new battery plant in Alabama is a major milestone on our way to going all-electric," Ola Kallenius, Mercedes CEO, comments. "With our comprehensive approach including a local cell sourcing and recycling strategy, we underline the importance of the US, where Mercedes-Benz has been successful for decades. We’re proud to create new, future-proof jobs to build all-electric SUVs ‘Made in the USA' at a plant that is such an established part of our production family since 25 years.”

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