Mercedes-Benz kills energy storage project involving home battery pack

Mercedes-Benz kills energy storage project involving home battery pack

German automaker Mercedes-Benz has announced that it is discontinuing its 2017-launched energy storage project related to the development of a home battery pack, for potentially taking on the Tesla Powerwall energy storage system. Tesla Powerwall segment has been reporting higher installations and success of current operations suggest that the energy storage business unit will pick up momentum in near future.

In revealing that the project involving the potential Tesla Powerwall competitor has been killed by the company, Mercedes-Benz said that the team of employees working on the energy storage system in the US will be shifted to other divisions of the company.

For the deployment of the energy storage system which has now been discontinued, Mercedes-Benz had teamed up with Vivint, a company which is one of the foremost competitors of Tesla in the residential solar market in the US. Tesla has been selling its battery packs independently since 2015.

Mercedes-Benz and Vivint were marketing the now-discontinued home battery pack just like the Tesla Powerwall. The marketing images for the discontinued energy storage product also had a weird similarity with Tesla’s advertising for solar installations and batteries. Tesla recently increased the price of Powerwall systems by $500, indicating a stronger demand for energy storage system.

About Mercedes-Benz’s decision to discontinue the energy storage project linked to developing a home battery pack, a company spokesperson has apparently told GTM that the product apparently has a fairly high price-point for the market because the team behind the development of the pack had ‘over-engineered’ it, making the product more of a vehicle battery pack instead of a stationary home battery pack.