"Our electric offensive continues to gain momentum," Daimler Chief Executive Officer Dieter Zetsche said in a statement.
Daimler AG has secured the supply of battery cells worth more than € 20,000 million ($ 23,000 million)) until 2030, while the Mercedes-Benz manufacturer is advancing on switching to electric cars.
The purchase agreement will help increase the widespread distribution of 130 hybrid and all-electric cars across the line of Mercedes-Benz's main automotive division until 2022, the German automaker said on Tuesday. German competitor Volkswagen AG announced similar plans earlier this year.
The monster investment that Volkswagen will make for the development of electric cars
"Our electric offensive continues to gain momentum," Daimler Chief Executive Officer Dieter Zetsche said in a statement. "After investing billions of euros in the development of the electric fleet and the expansion of our global accumulator network, we are now taking the next step."
The batteries will fuel the product lines of the models that will challenge the market leader in electric cars Tesla Inc., which will present the 3-sedan mass market in Europe next year.
Daimler will invest 10 billion euros to expand its range of battery-powered cars after the introduction of the Mercedes-Benz EQC crossover in September.
Daimler's battery production network will cover eight factories on three continents, and the second factory in Kempen, Germany, will start production early next year.
The world's largest luxury carmaker has reiterated that it expects automotive batteries to account for up to 25% of global supplies by 2025, depending on customer demand and freight infrastructure.