Mercedes-Benz Cars is set to begin production of electric batteries in Jawor, Poland, the Polish Prime Minister Mateusz Morawiecki announced at a press conference as the Daimler-owned company ramps up investments into electric vehicle components.

Public news channel TVP quoted Mr Morawiecki as saying, "we are very happy that an investor that has been with us for a few years has entrusted us again and in the same place in Jawor".

Daimler is currently already constructing a plant in Jawor that will produce engines. The company is the latest in a number of German car manufacturers who, as a result of a clampdown on toxic diesel emissions by European regulators, are branching out into electric vehicles.

× Expand Polish-Prime-Minister-Mateusz-Morawiecki Polish Prime Minister Mateusz Morawiecki

Markus Schafer, an Mercedes-Benz Cars board member told the conference that 300 new jobs would be created as a result of the over €200 million investment.

As Daimler readies for the mass production of electric and hybrid vehicles, it announced in December that it intends to buy more than €20 billion worth of battery cells by 2030.

There is, at present, a range of different battery recipes competing within the automotive industry for use in cathodes. NCA, or lithium nickel cobalt aluminium oxide, is one of them, produced by Panasonic and used by Tesla.

A composition called LFP is used by most Chinese manufacturers. LFP has a lower energy density but does not contain cobalt. Carmakers in Japan, however, tend to opt for LMO, or lithium manganese oxide, which is used by LG Chem and Nissan.