Seoul: Samsung SDI Co., a major South Korean battery manufacturer, announced that it has signed a multiyear agreement with Mercedes-Benz Group AG to supply electric vehicle (EV) batteries for the German automaker. The agreement was finalized during a ceremony in Seoul attended by Samsung SDI CEO Choi Joo-Sun and Mercedes-Benz chairman and CEO Ola Kallenius, along with other senior executives from both companies.
According to Yonhap News Agency, this deal marks the first EV battery supply agreement between Samsung SDI and Mercedes-Benz. Under the terms of the partnership, Samsung SDI will provide high-performance nickel-cobalt-manganese (NCM) batteries for Mercedes-Benz's next-generation EVs. These batteries are noted for their high energy density, longer driving range, extended lifespan, and strong output, and they incorporate Samsung SDI's proprietary safety technologies.
The batteries supplied by Samsung SDI will be used in Mercedes-Benz's upcoming compact and midsize electric sport utility vehicles (SUVs) and coupe models. This move aligns with Mercedes-Benz's strategy to capture a significant share of the next-generation EV market. Additionally, the two companies have agreed to enhance their cooperation in future mobility areas, including the joint development of next-generation battery technologies.
A Samsung SDI official highlighted the significance of the partnership, stating, "This partnership brings together the innovative DNA of both companies. It is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market."
In a related development, Mercedes-Benz Group engaged with key South Korean suppliers, including LG Energy Solution Ltd., to explore further collaboration in electrification, digitalization, and future mobility. The German luxury automaker reiterated its long-standing partnership with LG, which has been a collaborator in the display and battery sectors. Last October, LG Energy Solution was selected as a supplier of lithium iron phosphate (LFP) batteries and had previously been chosen to supply batteries for multiple vehicle segments.