By Kim Richters
Daimler AG's (DAI.XE) Mercedes-Benz passenger-car division said Tuesday that it will source carbon-neutrally produced battery cells from China's Farasis Energy.
The car maker said that by using these battery cells it will "save well over 30% of the carbon footprint of future vehicle models' entire battery."
Daimler aims to make carbon neutrality a criterion for suppliers and producers and include it in contracts, a Mercedes-Benz spokeswoman said. If companies aren't able to comply for the time being, Daimler will expect a roadmap for reaching carbon neutrality in the future, the spokeswoman said.
Farasis Energy uses electricity from renewable energy sources to produce the battery cells, Mercedes-Benz said.
Mercedes-Benz said the agreement between the two companies also covers the development of concepts for the recycling of lithium-ion batteries and components.
Additionally, the company said it has asked Farasis Energy to disclose its entire supply chain for the battery cells to ensure the compliance and protection of human rights and the responsible sourcing of cobalt.
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