Mercedes-Benz Group AG is reportedly in advanced negotiations with South Korea’s Samsung SDI to secure a long-term supply of battery cells for its future electric vehicles, signalling a strategic move to strengthen its electrification roadmap.
Reports from the industry say that the talks are mostly about the supply of prismatic battery cells. These cells are expected to be used in Mercedes-Benz’s next-generation electric cars, which are planned to come out around 2028, especially in smaller models.
The potential agreement is considered significant in scale, with expectations of a multi-billion-dollar contract, reflecting the growing demand for high-performance battery solutions in the global EV market.
The two companies are also looking into the idea of building a battery factory in Europe just for the partnership. Austria, Slovakia, and the Czech Republic are some of the possible locations being looked at. The goal is to make sure that supply stays stable and that the new location fits in with regional industrial policies.
It has been said that senior-level talks between the companies have picked up speed over the past year, with high-profile meetings between executives in Asia and Europe. If the deal goes through, it would be the first time that Samsung SDI batteries are used in Mercedes-Benz electric cars. This would be a big step forward for both companies.
The development comes as Mercedes-Benz seeks to diversify its battery sourcing strategy after facing challenges with its existing joint venture, particularly delays and production issues linked to the Automotive Cells Company (ACC).
At the same time, Samsung SDI wants to strengthen its position in the European EV battery market by signing long-term contracts with major automakers around the world.If it makes a good deal with Mercedes-Benz, it could become a top partner in the luxury car industry and get a lot more attention.
Despite the progress, neither Mercedes-Benz nor Samsung SDI has officially confirmed the deal, indicating that negotiations are ongoing and subject to final agreement.
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