STUTTGART (Reuters) - Mercedes-Benz inaugurated a development and production centre for battery cells on Monday at its headquarters in Germany, in a move to take greater control of the chemical composition and industrial manufacturing of its batteries.

The location, dubbed "Mercedes-Benz eCampus", will make tens of thousands of battery cells a year in a 10,000 square metre factory, with a view to opening a battery test and trial centre by the end of this year.

Mercedes-Benz is working on lithium ion cells with high-energy anodes and cobalt-free cathodes, as well as solid-state technology, which holds the promise of more energy storage, longer driving ranges and faster charging.

Increasing the energy density of EV batteries is key particularly for premium carmakers looking to reduce weight and costs while boosting driving range.

Cell designs developed at the new centre will be shared with partner companies and incorporated into future battery cells from suppliers, Mercedes-Benz Chief Technology Officer Markus Schaefer said.

German Economy Minister Robert Habeck, an advocate of investment in green technology, attended a tour of the site to mark its inauguration.

"It is of key importance that Germany and Europe build up their own capacities and, in particular, their own know-how in this key technology," Habeck said in a statement.

The luxury carmaker has battery production sites in seven locations including Germany, the U.S., China, and Poland, and sources battery cells from suppliers including China's CATL.

It holds a 30% stake in battery cell venture ACC, which last month paused work on factories in Europe amid slowing demand for electric vehicles.

It has also invested in Sila Nanotechnologies, which makes batteries using silicon-based anodes, and signed a supply agreement with Brandenburg-based Rock Tech Lithium ( RCKTF ) to supply lithium hydroxide for Mercedes-Benz batteries.