Mercedes-Benz has announced that all its models will have a fully electric option from 2025.

It has stated that it will invest more than €40 billion (£34.4bn) into battery electric vehicles (EVs) between 2022 and 2030 to accelerate its EV portfolio and EV adoption.

It plans to set up eight gigafactories for battery production to reach a capacity of more than 200GW.

Mercedes-Benz has pledged to make all passenger car and battery sites carbon-neutral in production by 2022.

Ola Kallenius, CEO of Mercedes-Benz, said: “The EV shift is picking up speed. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade”