High-nickel batteries to power German carmaker’s future compact, midsize EV models
Samsung SDI has reached a multi-year battery-supply agreement with Mercedes-Benz, marking the South Korean battery manufacturer’s first supply deal with the German luxury automaker, the companies announced Monday.
The agreement was signed at a ceremony in Seoul, attended by Samsung SDI President and CEO Choi Joo-sun, Vice President Cho Han-jae, Mercedes-Benz Group Chair Ola Kallenius, Chief Technology Officer Jorg Burzer and Mercedes-Benz Korea CEO Mathias Vaitl.
Samsung SDI said the batteries will use high-nickel, nickel-cobalt-manganese materials to deliver high energy density, longer driving range, longer lifespan and high power. The batteries will also feature Samsung SDI’s proprietary safety technologies.
Mercedes-Benz plans to install the batteries in future compact and midsize electric sport utility vehicles and coupe models as it expands its next-generation EV lineup.
Industry sources say Samsung SDI’s prismatic batteries will be sourced for Mercedes-Benz’ upcoming 2028 EV. Although exact figures have not been disclosed, Samsung SDI’s supply volumes are expected to reach tens of gigawatt-hours, with the total contract value to exceed 10 trillion won ($6.8 billion)
The two companies said they also plan to expand their cooperation beyond the current supply agreement to include joint development of next-generation battery technologies and other future mobility solutions.
“This partnership brings together the innovative DNA of both companies,” said a Samsung SDI official. “It is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market.”
Mercedes-Benz said the partnership “ensures a stable supply of high-performance battery technology, a critical component of the brand’s electrification strategy.”
Samsung SDI’s latest deal with Mercedes-Benz will deepen the Korean manufacturer’s footprint among Europe’s top-tier automakers, adding Mercedes-Benz to a customer base that includes BMW and Volkswagen. The large order is also expected to boost Samsung SDI’s revenue and factory utilization.
For Mercedes-Benz, which already sells EVs equipped with products from Korean companies such as LG Energy Solution and SK On, the agreement broadens its supplier network. The company seeks to diversify battery sourcing and secure stable supplies for its next-generation EVs.
The latest agreement follows efforts by Samsung Electronics Chair Lee Jae-yong to deepen ties with the German carmaker. During a visit to South Korea in November last year, Mercedes-Benz Chair Kallenius met Lee at Seungjiwon, Samsung’s VIP guest house in Seoul, where the two discussed potential cooperation in automotive electronics and batteries.
Negotiations gained further momentum after Lee’s recent visit to Germany alongside Samsung SDI President Choi, where the two executives held talks with Mercedes-Benz officials to advance cooperation discussions.
Samsung’s relationship with Mercedes-Benz is expected to deepen with the latest deal; Samsung Electronics subsidiary Harman already supplies the German carmaker with advanced infotainment platforms and audio systems.
sahn@heraldcorp.com
