By Kim Richters 
 

Daimler AG's flagship Mercedes-Benz brand plans to spend more than 40 billion euros ($47.18 billion) between 2022 and 2030 in its push for fully electric vehicles, the latest car maker vowing to accelerate the transition to electric mobility.

At a strategy event on Thursday, Mercedes-Benz said it would be ready to go all electric by the end of the decade, where market conditions allow, and that it expected hybrid and electric vehicles to account for up to 50% of sales by 2025. However, it didn't disclose a specific date for phasing out cars with internal-combustion engines.

Mercedes-Benz would need battery capacity of more than 200 gigawatt-hours and it wants to set up eight factories for producing battery cells together with partners world-wide. These sites are in addition to an already planned network of nine plants for building battery systems, it said.

With its announcement, Mercedes-Benz, which said it would stick to its profitability targets, joins other major auto makers that have released electrification budgets and plans as the industry shift intensifies. Stellantis NV, formed through the merger of Fiat Chrysler Automobiles NV and Peugeot SA, recently said it would spend more than EUR30 billion through 2025 on electrification and software development. German car giant Volkswagen AG has earmarked investments of around EUR73 billion through 2025 in what it describes as future technologies.

On Thursday, Mercedes-Benz said that all newly launched vehicle architectures would be electric-only from 2025 and it wants to insource electric-drive technology, which will include acquiring U.K.-based electric motor company YASA.

"The EV shift is picking up speed--especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade," said Daimler's Chief Executive Officer Ola Kallenius.

At 0133 GMT, shares in Daimler traded 1.3% higher at EUR71.75.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

July 22, 2021 10:11 ET (14:11 GMT)