Daimler AG together with partner Evonik Industries AG are considering selling Li-Tec Battery GmbH, a joint venture that isn’t really very profitable. The companies’ efforts to find another owner to join up have been in vain, which is why it is now considering a sale.
Li-Tec Battery, based in Dresden and formed in 2008, makes Li-Ion battery cells meant for use in automobiles as well as other industrial applications. The company develops and makes its own batteries. It was seen as a good way to provide batteries for future electric vehicles produced by the German automaker.
Daimler has a 49.9 percent stake in the joint venture, while Evonik holds the rest of the shares. The companies hope to get up to €1 billion (around $1.32 billion) in the sale of Li-Tec Battery.
While this move puts a dent in Daimler’s efforts to have some control in the various technologies used for electric vehicles, it can also be seen as an indicator of the slow adoption of electric vehicles in the worldwide automotive market.
According to the 2012 annual report from Daimler, Li-Tec lost €26 million (around $34.5 million) in 2011.