Mercedes-Benz and Samsung SDI have signed a multi-year agreement for the supply of electric vehicle batteries for future compact and midsize models. The partnership also includes collaboration on developing next-generation battery technology.
Samsung SDI, an affiliate of the consumer tech giant, will provide high-nickel NCM (nickel, cobalt, and manganese) batteries, known for extended driving range and lifespan. These batteries will be integrated into Mercedes-Benz's upcoming electric SUVs and coupe models as the company targets the next-generation EV market.
This deal strengthens Samsung SDI's presence in Europe's automotive sector, adding Mercedes-Benz to its existing client list, which includes BMW, Stellantis-linked brands, Volvo Group, and Jaguar Land Rover. The agreement aligns with European Union efforts to address affordability challenges in the EV market.
Industry sources suggest the contract value could exceed 10 trillion won (approximately €5.8 billion), with supply volumes expected to reach tens of gigawatt-hours. Mercedes-Benz also reaffirmed its partnership with LG during the South Korean visit, focusing on display and battery sectors.
"Mercedes-Benz is proud to strengthen collaboration in core technology areas with Korean partners who possess world-class technological competitiveness," stated Jörg Burzer, chief technology officer of Mercedes-Benz Group AG. The collaboration is set to accelerate innovation in electrification and mobility.