n a statement on Wednesday, Envision said its battery subsidiary will provide battery cell modules for Mercedes' production of all-electric EQ vehicles in the state of Alabama.

"Envision AESC will be a major supplier securing capacity for the next generations of our Mercedes-EQ products built in the US in the years to come," said Mercedes-Benz Chief Technology Officer Markus Schaefer.

Envision AESC will build a plant in the US, which will be operational in 2025, but did not disclose its location and the amount of investment it will involve.

Zhang Lei, executive chairman of the battery maker, said this will a significant step forward in the company's mission to be a leading technology partner to support the global transition to carbon neutral transportation.

Headquartered in Japan, Envision AESC has unveiled plans to build 10 plants in countries including China, Japan, Britain and France, with their combined production capacity to reach 300 gigawatt hours by 2025.

Envision AESC has 2,500 employees. It said it has produced power batteries for more than 600,000 electric vehicles in 44 countries over the past 11 years.

Mercedes, which plans to produce batteries in Europe, North America and Asia, aims to have eight cell factories with partners around the world with capacity to produce 200 gigawatt hours a year by the end of the decade, said Reuters.