Mercedes Taps Formula 1 Team for Prototype in Race With Tesla

(Bloomberg) -- Daimler AG brought in experts from its record-breaking Formula 1 team to produce an electric prototype that may help take the fight to fend off Tesla Inc. to the next level.

The EQXX, presented at the CES show in Las Vegas, can drive more than 1,000 kilometers (621 miles) with a battery half the size of Mercedes-Benz's EQS, its current flagship electric vehicle, the manufacturer said Monday. The sedan's battery technology is set to be deployed in the company's compact cars from 2024.

“This isn't a show car but a protagonist for technology development,” Markus Schaefer, Daimler's head of development and procurement, said in an interview. “Mercedes has worked hard in the last few years -- it's our ambition to not only keep up but to be at the top of the game.“

Mercedes has a goal of only selling fully electric cars by 2030 where possible and has vowed to defend its position as the world's biggest luxury carmaker with an accelerated 40 billion euro ($45 billion) spending plan. The company this year unveiled the EQS, the S-Class's electric sibling, which boasts an industry-leading driving range.

While the manufacturer is deepening its transformational push this year with the all-electric EQE sedan and the EQB sport-utility vehicle, plug-in hybrids still dominate electrified vehicle sales that accounted for 14% of deliveries this year through October. And while EVs are taking off amid tougher emissions rules and generous purchasing subsidies, Tesla still leads the pack.

“We'll become even faster in the transformation,” said Schaefer, whose team put together the EQXX in 18 months. “The efficiency of this powertrain is world-class.”

The sedan's battery features a new chemistry developed with the help of Formula 1 experts from the Mercedes-AMG High Performance Powertrains division in the U.K. The battery pack, with 50% less volume and 30% lighter than that of the EQS, is small enough to fit into compact vehicles.

Engineers also used a new one-part casting method to form a major aluminum component as the rear of the car, reminiscent of Elon Musk's much-touted Giga press. For the interior, the company is using vegan silk and faux leather made from mushrooms.

“This project was about breaking down barriers for our designers and engineers to work as a team across different areas and a range of disciplines to share the best ideas,” Schaefer said.