Samsung SDI CEO Choi Joo-sun, sixth from left, and Mercedes-Benz Group Chairman Ola Kallenius, eighth from left, pose with executives from both companies during a signing ceremony at a hotel in Seoul, Monday. Courtesy of Samsung SDI
Samsung SDI signed a multiyear contract Monday to supply high-nickel batteries made of nickel, cobalt and manganese for Mercedes-Benz’s next-generation compact and midsize electric SUVs, as well as coupe models.
This marks the first time the Korean battery maker has struck an electric vehicle (EV) battery supply agreement with the German carmaker. Both companies kept the scale of the deal confidential.
With Samsung SDI CEO Choi Joo-sun and Mercedes-Benz Group Chairman Ola Kallenius in attendance, the two companies held a signing ceremony in Seoul, pledging to broaden their strategic cooperation in future mobility, including joint development of next-generation battery technology.
Samsung SDI also emphasized that the batteries for Mercedes-Benz deliver high energy density, extended driving range, long lifespan and high power, along with the Korean firm’s own safety solutions.
“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.”
When Kallenius visited Korea last November for separate meetings with top executives of Samsung and LG, the trip resulted only in a $1.4 billion EV battery supply deal with LG Energy Solution, announced last December.
After Samsung Electronics Executive Chairman Lee Jae-yong visited Germany with Samsung SDI’s CEO last month, market expectations grew for a partnership between the Korean conglomerate and Mercedes-Benz.
With the latest deal, Samsung SDI now supplies EV batteries to three leading German automakers, including BMW and Audi.
Although Austria, Slovakia and the Czech Republic have been mentioned as potential sites for Samsung SDI’s new European factory dedicated to producing EV batteries for Mercedes-Benz, the Korean firm denied the speculation, saying that its existing plant in Hungary will likely supply batteries for the German carmaker.
Source: Korea Times News
