Mercedes-Benz is charging ahead into an all-electric future, and at the heart of its North American strategy lies the Mercedes-Benz plant in Alabama. This established automotive hub is not just keeping pace with the electric vehicle (EV) revolution; it’s driving it forward. The recent opening of a state-of-the-art battery plant in Bibb County, Alabama, marks a pivotal moment for Mercedes-Benz, underscoring the significance of the United States in its global electric ambitions and solidifying Alabama’s role as a key exporter of luxury SUVs in the electric era.
This strategic move signifies more than just a new factory; it represents a deep commitment to electrification and the creation of future-proof jobs in the region. For a quarter of a century, the Tuscaloosa plant has been synonymous with Mercedes-Benz SUVs, and now, it’s leading the charge into a new era of electric luxury vehicles.
Alabama: The Cornerstone of Mercedes-Benz’s Electric Vehicle Strategy
The Mercedes-Benz U.S. International (MBUSI) plant in Tuscaloosa, Alabama, has been a cornerstone of the company’s global production network since 1997. Over the past decades, this plant has become synonymous with the production of large, luxurious SUVs bearing the iconic three-pointed star. Having invested over seven billion dollars in Alabama since the 1990s, Mercedes-Benz’s commitment to the state is undeniable. A significant portion of this investment, a billion dollars, has been channeled into the new battery plant, upgraded logistics centers, and enhancements to the production line to seamlessly integrate EV manufacturing.
This substantial investment is paying dividends. MBUSI currently employs approximately 4,500 individuals directly and supports an estimated 11,000 additional jobs within the region through suppliers and service providers. The sheer scale of production is impressive, with around four million vehicles rolling off the Tuscaloosa production line since its inception, including 260,000 SUVs in 2021 alone. Notably, roughly two-thirds of this output is exported, firmly establishing MBUSI as one of the largest automotive exporters in the United States.
The strategic importance of Alabama is further amplified by the plant’s inherent flexibility. Mercedes-Benz’s advanced production system enables the assembly of diverse models with varying drivetrains on a single production line. This adaptability is crucial in a rapidly evolving automotive market, allowing the plant to respond swiftly to shifts in consumer demand. Beyond the existing GLE, GLE Coupe, GLS, and Mercedes-Maybach GLS models, the Tuscaloosa plant is now poised to manufacture all-electric vehicles, starting with the highly anticipated EQS SUV and EQE SUV, powered by batteries produced in the adjacent Bibb County facility.
Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, responsible for Production and Supply Chain Management, emphasized the global significance of this expansion, stating, “Team USA will play a major role in the continued success of Mercedes-Benz and we are proud that our new electric SUVs will also be built here in Alabama for global markets.”
State-of-the-Art Battery Production in Bibb County
The newly inaugurated battery plant in Bibb County represents a significant leap forward in Mercedes-Benz’s electrification journey. This cutting-edge facility is dedicated to the CO2-neutral production of high-performance lithium-ion batteries, essential components for the EQS SUV and EQE SUV.
Spanning approximately 984 feet with over 70 workstations, the battery production line employs a fully digitalized process to assemble intricate battery systems. These systems incorporate up to twelve cell modules, alongside the EE compartment for intelligent power electronics integration. The plant is projected to generate up to 600 new jobs in Bibb County, further boosting the local economy.
The battery technology itself is at the forefront of innovation. Utilizing a modular design shared with the EQS and EQE sedans, the batteries feature advanced cell chemistry with an 8:1:1 ratio of nickel, cobalt, and manganese. Crucially, Mercedes-Benz has reduced the cobalt content to approximately ten percent, enhancing sustainability alongside the CO2-neutral production process.
With the addition of the Bibb County plant, Alabama now joins Mercedes-Benz’s extensive global battery production network, alongside facilities in Germany, China, Thailand, Poland, and other locations. This network ensures localized battery supply for vehicle production while also maintaining export capabilities as needed. Mercedes-Benz is investing over one billion Euros in expanding this global battery production network, demonstrating its long-term commitment to electric vehicle manufacturing.
Safety and workforce development are paramount at the new plant. Mercedes-Benz has implemented stringent safety protocols and comprehensive high-voltage safety training programs for all team members accessing the battery facility. This dedication to employee training underscores the company’s commitment to operational excellence and a skilled workforce capable of handling advanced EV technologies.
Envision AESC Partnership: Securing the Battery Supply Chain
To bolster its electric vehicle production ramp-up in Tuscaloosa, Mercedes-Benz is forging strong partnerships within the battery technology sector. A key alliance is with Envision AESC, a leading global battery technology company. Envision AESC will supply the Mercedes-Benz battery plant in Bibb County with high-performance battery modules from a new U.S.-based cell factory, with supplies commencing in the mid-2020s.
This strategic partnership ensures a localized and secure supply chain for critical battery components, mitigating logistical complexities and enhancing production efficiency. Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Development and Procurement, highlighted the significance of this collaboration: “Envision AESC will be a major supplier securing capacity for the next generations of our Mercedes-EQ products built in the U.S. in the years to come. With Envision AESC’s net-zero carbon solutions and battery technology, this new cooperation underlines our holistic approach regarding our sustainable value chain and allows us to secure supplies, to take advantage of economies of scale, and to provide our customers with superior battery technology.”
MO360 and the Digitalization of Production
Mercedes-Benz is leveraging cutting-edge digital technologies to optimize production efficiency and flexibility at the Alabama plant. The MO360 digital production ecosystem is instrumental in seamlessly integrating Mercedes-EQ models into existing production lines. The “fullflex marriage” system exemplifies this, enabling the connection of various drivetrain variants and vehicle bodies on the same assembly line.
MO360 provides real-time data and customized work instructions to employees, empowering them to perform their tasks with maximum efficiency and precision. This digital infrastructure facilitates continuous process and quality improvements across Mercedes-Benz’s global passenger car plants. The emphasis on digitalization, coupled with a highly skilled and trained workforce, positions the Mercedes-Benz plant Alabama at the forefront of modern automotive manufacturing.
The All-New EQS SUV: Born in Alabama
The Mercedes-Benz plant in Tuscaloosa is poised to become the birthplace of groundbreaking electric SUVs, starting with the EQS SUV. Celebrating its world premiere, the EQS SUV represents the pinnacle of electric luxury SUVs, blending the progressive design and opulent comfort of the EQS sedan with the versatility and spaciousness of a large SUV.
The EQS SUV interior showcases a digital-first design philosophy, most notably with the optional MBUX Hyperscreen – a stunning 56-inch curved screen spanning nearly the entire cabin width. This seamless display integrates the instrument cluster, infotainment, and passenger display, creating a truly immersive and futuristic user experience. With optional third-row seating and electrically adjustable second-row seats, the EQS SUV offers unparalleled flexibility and caters to diverse customer needs.
Sustainability at Every Step
Sustainability is deeply embedded in the design and operation of the Mercedes-Benz plant Alabama, particularly the new battery facility. The plant incorporates numerous eco-conscious features, including energy-efficient building design, solar thermal energy for water heating, and rainwater capture systems. Intelligent LED lighting, ventilation control, and environmentally friendly refrigerants further minimize the plant’s environmental footprint. Even the forklifts are powered by hydrogen, replacing traditional diesel fuel.
Mercedes-Benz is committed to powering the Bibb County site entirely with renewable energy sources from 2024 onwards, pending the approval of planned solar energy projects. Beyond renewable energy, the company is actively pursuing a comprehensive battery recycling strategy, aiming to close the material loop for lithium-ion batteries from Mercedes-EQ vehicles. This includes building its own battery recycling plant in Germany and establishing partnerships for high-tech battery recycling in China and the United States.
Furthermore, Mercedes-Benz is demonstrating its commitment to environmental stewardship through a five-year partnership with The Nature Conservancy, supporting the Working Woodlands site in northeast Alabama. This initiative focuses on preserving and promoting sustainable forestry and nature-based approaches, contributing to Mercedes-Benz’s broader “Ambition 2039” goal of achieving a CO2-neutral vehicle fleet by 2039.
The Mercedes-Benz plant in Alabama is not just manufacturing vehicles; it is building a sustainable future for automotive production. From CO2-neutral battery production to investments in renewable energy and ecological partnerships, this plant embodies Mercedes-Benz’s holistic commitment to environmental responsibility and its vision for an all-electric future. As Mercedes-Benz accelerates its electric vehicle roll-out, the Alabama plant will remain a vital hub, powering the electric revolution in the US and beyond.
