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Mercedes takes on Tesla with new U.S. battery plant, electric SUV

Mercedes takes on Tesla with new U.S. battery plant, electric SUV

Mercedes-Benz AG opened its first U.S. electric vehicle (EV) battery factory on Tuesday

and said Japanese battery maker Envision AESC would supply battery modules for U.S.-made Mercedes EVs from a new U.S. plant by the middle of the decade.

Mercedes also previewed a large electric SUV to be built at the nearby Tuscaloosa, Alabama assembly facility this year

The EQS SUV and a smaller EQE electric SUV, also to be made in Alabama, join a growing line-up of electric SUVs seeking to challenge Tesla in the United States, China and Europe.

The battery plant, which will employ 600 workers, and the assembly facility are part of a 40 billion euro ($44 billion) drive by Mercedes to go all electric by 2030

The Mercedes Alabama assembly plant, which turns 25 this year, can build both electric and combustion vehicles, and is one of the largest Mercedes vehicle-making plants in the world.

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