Daimler is buying nearly $23 billion of battery cells to power its electric vehicle offensive

Daimler plans to buy $23 billion worth of battery cells by 2030 as the maker of Mercedes-Benz vehicles and commercial trucks prepares to bring dozens of electric and hybrid vehicles to market.

The German automaker didn’t disclose which companies would supply them with batteries. However, Daimler does have supply deals with LG Chem and SK Innovation, as well as China’s CATL.

Daimler’s $22.8 billion budget for lithium-ion batteries is just part of its multi-billion effort to launch 130 electric and hybrid vehicles by 2022 as well as commercial trucks, buses and vans.

The company has been ramping up its electric vehicle offensive for years now, an effort that has included the development of a heavy-duty electric truck, plans to spend $1.2 billion to develop global battery production and an investment in electric charging company ChargePoint .

The global battery production network for Mercedes-Benz Cars will eventually consist of eight factories on three continents. The first factory in Kamenz, Germany is already in series production and the second factory there will start series production at the beginning of 2019. Two more factories will be built in Germany, as well as in Beijing, Bangkok and Tuscaloosa, Alabama.

More recently, the company unveiled the EQC, an all-electric crossover that kicks off the German automaker’s plans to invest more than $12 billion to produce a line of battery-powered models under its new EQ brand. The company has also tapped a new CEO, who has most recently been leading the automaker’s research and development efforts, including its push into electric vehicles.

The global supply of lithium-ion battery cells will come under increasing pressure as electric vehicles move into the mainstream. That expectation is what drove Tesla to build its massive battery production factory, called the Gigafactory, near Reno, Nevada.

“With extensive orders for battery cells until the year 2030, we set another important milestone for the electrification of our future electric vehicles of the EQ product and technology brand, said Wilko Stark, a Mercedes-Benz board member.