Joseph White

TUSCALOOSA. Ala. (Reuters). Mercedes-Benz AG officially opened its first U.S.-made electric car (EV) factory Tuesday. Envision AESC (Japan battery maker) will supply the U.S-made Mercedes EVs with battery modules from a U.S.-based plant in the middle part of the next decade.

Mercedes previewed a larger electric SUV at Tuscaloosa’s assembly facility, Alabama, alongside the launch its Bibb county, Alabama, battery plant.

A smaller EQE and EQS electric SUV, both to be manufactured in Alabama, are part of a growing number of electric SUVs that seek to compete with Tesla (NASDAQ:), in America, China, and Europe.

Mercedes is aiming to make electric cars 100% by 2030. The assembly plant and battery plant will be employed by 600 people.

Mercedes will produce EV batteries in Europe North America, Asia and North America. The company plans to establish eight cell factories around the globe with global partners. They are expected to be able produce 200 gigawatt hours per year.

Ola Kaellenius, chief executive of Mercedes, and other executives visited Alabama Tuesday to officially open the new battery plant.

Kaellenius wants to help Mercedes transition from being a combustion technology company into a firm that does not emit carbon, but relies on software to power its products.

The rising gasoline prices after Russia invaded Ukraine have increased the difficulties for automakers who still depend on oil-powered vehicles to make profits.

Mercedes and other established carmakers have a lead over Tesla in EV sales, and in the development of computer and software systems to rival U.S. companies’ steady stream of features and updates.

Mercedes Alabama’s assembly plant can produce both combustion and electric vehicles. It is the 25th anniversary of its founding.

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