Dive Brief:
- Battery maker Samsung SDI announced in a press release that it secured an electric vehicle battery supply deal with Mercedes-Benz, its first supplier agreement with the automaker.
- As part of the multi-year supply partnership, Samsung SDI will provide Mercedes-Benz with high-energy, nickel manganese cobalt batteries for its future EVs. The two companies also plan to expand their strategic cooperation to include joint development of next-generation battery technology, per the release.
- “This partnership brings together the innovative DNA of both companies,” Samsung SDI said in the release. “It is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market.”
Dive Insight:
The signing ceremony in South Korea was attended by Samsung SDI President and CEO Joo Sun Choi, Mercedes‑Benz Group Chairman Ola Källenius and CTO Jörg Burzer, along with other company officials.
Mercedes-Benz plans to use the high-nickel, NCM batteries supplied by Samsung SDI in its future compact and mid-size electric SUVs and coupe models as part of its strategy to target the next-generation EV market, per the release.
The automaker also unveiled the all-new electric C-Class on Monday, April 20 in Seoul, South Korea. Production will begin at the Mercedes-Benz Kecskemét plant in Hungary during the second quarter of 2026. North America deliveries are slated to begin in early 2027.
The C-Class is one of the company’s best-selling global models and the automaker is targeting higher-volume EV sales with its launch. Earlier this month, the automaker reported strong EV growth in Q1 in Europe and Germany, driven by the all-new electric CLA sedan.
Although some automakers, including Ford Motor Co., have significantly scaled back their EV plans due to a challenging market and profitability concerns, the auto industry’s long-term shift to electrification is expected to continue as more affordable EVs hit the market. Therefore, securing a steady supply of batteries is crucial for automakers like Mercedes-Benz that are pursuing more long-term electrification strategies.
Last week at Mercedes-Benz’s annual general shareholder meeting, the automaker shared its strategic direction, which it said was focused on the “largest product and technology campaign in the company’s history,” per a press release.
The automaker said it plans to invest over €10 billion ($11.8 billion) in the current year on new technology initiatives. Over the medium term, Mercedes-Benz is targeting sales of around 2 million vehicles, with electrified vehicles accounting for roughly 40% of its total sales.
In March 2025, Samsung SDI announced it started production of larger 46-series cylindrical cell batteries, which are viewed as the next-generation cell formats for EVs. According to the company, the larger-format batteries contain around six times the energy capacity than the 21700 batteries that preceded them. At the time, Samsung SDI said it was the first battery maker in South Korea to supply the new format to an overseas customer and the new design would help it expand its global customer base.
