Samsung SDI Signs Multiyear EV Battery Deal with Mercedes-Benz

SEOUL, April 20 (Yonhap) -- Samsung SDI Co., a major South Korean battery manufacturer, said Monday it has signed a multiyear agreement with Mercedes-Benz Group AG to supply electric vehicle (EV) batteries for the German automaker. The agreement was signed at a ceremony in Seoul attended by Samsung SDI Chief Executive Officer (CEO) Choi Joo-Sun and Ola Kallenius, Mercedes-Benz chairman and CEO, along with other senior executives from both companies. Under the deal, Samsung SDI will supply high-performance batteries for Mercedes-Benz's next-generation EVs. It marked the first EV battery supply deal between the companies. The nickel-cobalt-manganese (NCM) batteries will offer high energy density, longer driving range, extended lifespan and strong output. The power packs also come with the company's proprietary safety technologies. Mercedes-Benz plans to use the batteries in upcoming compact and midsize electric sport utility vehicles (SUVs) and coupe models as part of its strategy to target the next-generation EV market. The two companies, moreover, agreed to expand cooperation in future mobility areas, including joint development of next-generation battery technologies. "This partnership brings together the innovative DNA of both companies," a Samsung SDI official said. "It is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market." Separately, Mercedes-Benz Group met with key South Korean suppliers, including LG Energy Solution Ltd., to discuss ways to deepen cooperation in electrification, digitalization and future mobility. The German luxury automaker reaffirmed its long-standing partnership with LG, with which it has collaborated in the display and battery sectors. In October last year, LG Energy Solution was selected as a supplier of lithium iron phosphate (LFP) batteries. It had previously been chosen to supply batteries across multiple vehicle segments.