Mercedes plans to go fully electric by the end of the decade

Mercedes Benz announced its latest step towards electrification on Thursday, asserting that the company will offer BEV versions of its model lineup "in all segments the company serves" by 2022 and that "all newly launched architectures will be electric-only" starting in 2025.

"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," Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG, said in a prepared statement. "This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz."

To do so, MBZ plans to invest some €40 billion into BEV technology between 2022 and 2030. What's more, in the 2025 model year, MBZ will introduce a trio of EV-specific architectures: MB.EA for full-size passenger vehicles, AMG.EA for performance EVs geared towards existing AMG customers, and VAN.EA, Mercedes' new line of light commercial EVs and service vans.

Mercedes plans to build and operate eight gigafactories in the coming years to help accommodate the 200 gigawatts of battery production capacity the company anticipates it will need for all these new BEVs it will be making.