Mercedes-Benz has revealed that its Untertürkheim plant in Germany will be its fourth global battery manufacturing facility.

Currently, the six-facility plant in the Neckar Valley, near Stuttgart, produces internal combustion engines, transmissions and axles. The OEM already plans to develop the plant to manufacture electric vehicle powertrain components, however, including electric modules for the front and rear axles of electric vehicles.

The plant will complement parent Daimler’s two battery production sites in Kamenz, Germany, and one other in Beijing, China.

“In the coming years, we plan to produce a rising number of powertrains for conventional and hybrid vehicles,” said Markus Schäfer, member of the divisional board of Mercedes-Benz Cars, Production and Supply Chain.

“At the same time, we are creating competitive conditions in our plants with regard to electric mobility. With this further development, Untertürkheim will continue to be the lead plant in the global powertrain production network.”

Earlier this month, Daimler and its Chinese partner BAIC agreed to invest 5 billion yuan ($735m) in their local production joint venture, Beijing Benz Automotive Company (BBAC), as they prepare it for electric vehicle production from 2020.

The investment will include construction of a battery factory in Beijing – the first the German carmaker will build outside of Germany. The cells will also be sourced locally.

In May, Daimler held the groundbreaking ceremony for the second, €500m ($559m) battery factory in Kamenz.