Stuttgart-based car maker Daimler will spend 100 million euros in the coming years to increase its production of lithium-ion batteries in eastern Germany.

The company will expand capacity at Deutsche ACCUmotive, its battery-making division in Saxony, in anticipation of a high and steadily growing demand for electric-car batteries —especially for Mercedes’ hybrid S-Class, E-Class and C-Class models.

Steps to increase battery output tie in with Daimler’s plans to phase out production of lithium-ion battery cells at its second Saxony-based Li-Tec division by the end of 2015; most of the 250 workers will move over to Deutsche ACCUmotive.