Hubertus Troska, Daimler board member for China operations, presents Mercedes-Benz's electric EQC SUV at the Shanghai auto show in 2019. [Photo provided to China Daily]

Daimler would expand its partnership with the Chinese battery cell manufacturer Farasis Energy (Ganzhou) and acquire an equity stake in Farasis, the German carmaker announced on July 3.

International carmakers are buying stakes in Chinese power battery companies to ensure supplies as they rev up production of electric vehicles not only in the country but on a global scale.

German car group Daimler said it is spending "multimillion" euros to acquire a stake of around 3 percent in Chinese battery cell maker Farasis Energy.

Key elements of the "far-reaching strategic partnership" included the development and industrialization of highly advanced cell technologies, according to Daimler.

The contract would offer Daimler and its core brand Mercedes-Benz a "secure source of supply" of battery cells, while Farasis would receive "security for its planned construction of production capacity," the German carmaker noted.

To meet the increasing demand for Mercedes-Benz plants in Germany, Farasis was building a plant for battery cells in Germany that would create up to 2,000 jobs, according to Daimler. The site in eastern Germany was envisaged and designed as a CO2-neutral factory.

"With this agreement, we contribute our expertise in the field of battery cell development," said Markus Schaefer, member of the board of management of Daimler and Mercedes-Benz, responsible for Daimler Group Research and chief operating officer (COO) of Mercedes-Benz Cars.

"At the same time, we are providing a boost for Farasis's new plant and promoting the sustainable development of key technology and its establishment in Germany," added Schaefer.