German automotive manufacturer MAN has recently received approval for four funding projects from the Bavarian state government, amounting to nearly €25 million. The funds are part of a technology funding program aimed at advancing the development of high-voltage batteries for electric trucks and buses.
While one sub-project is still awaiting approval, the four approved projects have been granted a total of €24,160,400. The remaining funding is expected to be around €5 to €6 million, as Bavaria had initially pledged approximately €30 million for the initiative.
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MAN had announced its plans to establish a battery factory at its Nuremberg site a year ago. Although large-scale production is scheduled to commence in early 2025, the company will initially manufacture battery systems manually in small series at the Nuremberg facility. The investment at the manufacturing site for combustion engines is estimated to be approximately €100 million. The batteries produced in Nuremberg will be utilized to equip MAN’s electric trucks and buses.
Providing an update on the project timeline, MAN has revealed that battery production will be incrementally scaled up with the construction of a new production facility and a dedicated hall from 2025. The groundbreaking ceremony for the facility is planned for autumn 2023, slightly later than previously anticipated, which had suggested a mid-2023 start. Once operational, the new plant will have the capacity to mass-produce approximately 100,000 battery packs annually, sufficient for 15,000 to 25,000 vehicles depending on their configurations.
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However, considering MAN’s projection of at least a 50% electric share in trucks by 2030, this alone would correspond to 40,000 vehicles. As a result, MAN CEO Alexander Vlaskamp has emphasized the need for future expansion plans. Currently, MAN produces its electric buses in Poland, while the heavy-duty MAN eTruck will be manufactured in Munich starting in 2024. The company’s focus on battery development and manufacturing reflects its commitment to advancing sustainable transportation solutions and meeting the growing demand for electric commercial vehicles.