Mercedes-Benz plans to build its next-generation EV powertrains for its new MMA and MB.EA electric platforms entirely in-house starting in 2024.

The announcement was made by Markus Schäfer, head of development at parent company Daimler AG, in a discussion with German automotive news publication Automobilwoche.

"To do this, we are significantly increasing the depth of added value and are also switching from third-party sourcing to in-house production. Until now, the electric powertrains have come from external partners.”

Among Mercedes-Benz’s current suppliers are ZF Friedrichshafen, which builds powertrain modules for the EQC midsize SUV, and Valeo Siemens eAutomotive, which manufactures motors for the EQS luxury EV flagship.

Mercedes wants more control over all components of the EV powertrain, including the inverter, which transfers the energy from the battery to the engine.

"We want to control the overall system of electric motor, battery and power electronics as much as possible, similar to what is the case with the combustion engine. Whether we will then also build this ourselves has not yet been decided, however.”

Mercedes-Benz has already announced that it would build high-performance axial-flux electric motors developed with Daimler-owned British startup Yasa in Berlin. According to Schäfer, a second “kit” with radial electric motors for smaller vehicles will be built in Mercedes-Benz’s Untertürkheim plant.

In addition to motors, battery cells developed in-house will soon be available for Mercedes vehicles as the company is adjusting its production and supply forecasts and requirements. 

"We will certainly have to discuss expanding capacity globally for the electric powertrain, because we are accelerating significantly in electromobility, and by 2025 half of our vehicles will already be on the market purely electrically or as plug-in hybrids.”

So far, Mercedes has announced four battery cell factories in Europe that will be built with various partners, including ACC and China’s Farasis Energy.