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Mercedes-Benz will go all-electric by 2025, and has big plans for electric vehicles

Mercedes-Benz EV plugged into a charger outside a house
(Image credit: Mercedes-Benz)

2021 seems to be the year of electrification for the automotive world. Major automakers from all corners of the industry have made announcements that outline sweeping changes in how their products are developed, manufactured, and sold, nearly all of which include a significant shift to electric vehicles. 

Mercedes-Benz is the latest global automaker to signal its electrification ambitions, including a complete focus on developing EV-only platforms and technologies from 2025 onwards.

The automaker says that by 2022, it will offer an electric vehicle in every segment that it serves. The real shift, however, comes in 2025 and onward. 

All newly developed vehicle architecture from that point on will be electric-only, and the company will offer an EV alternative in every vehicle it makes.

What do Mercedes' EV plans look like?

The Mercedes-Benz electrified range parked on a race track

(Image credit: Mercedes-Benz)

Mercedes will roll out three EV platforms in 2025. They include:

  • MB.EA: Will cover all medium to large passenger cars and will be a scalable, modular system
  • AMG.EA: Dedicated performance EV platform
  • VAN.EA: Dedicated EV platform for vans and light-duty commercial vehicles

To accomplish this ambitious plan, Mercedes is making some changes to its organizational structure and is investing billions of Euros into facilities and technologies. 

The automaker says that it will reorganize its powertrain division to bring planning, development, purchasing, and production under one roof. Once that is complete, Mercedez-Benz will bring development and technology for electric drivetrains in-house, including the acquisition of YASA, a UK-based electric motor company.

Mercedes believes it will need a battery capacity of more than 200 Gigawatt hours and will construct eight Gigafactories to support that demand. 

Through investment and partnerships with targeted companies in the EV space, Mercedes-Benz says it will develop more efficient and flexible batteries and notes that it is in talks to develop solid-state battery technology.

Mercedes plan includes financial and human resources considerations, with roadmaps for retraining employees and potential early retirement/buyout plans for some. 

The automaker says that it will create 3,000 new software engineering jobs to develop its new MB.OS operating system worldwide. The company also emphasizes that its shift to electrification will not come at the expense of its financial stability.