Samsung SDI is in advanced discussions to supply prismatic batteries for Mercedes-Benz’s next-generation electric vehicles, with deliveries expected to begin in 2028. Both companies are considering a dedicated production line or facility in Europe, with Austria, Slovakia and the Czech Republic among the potential sites under review.
High-level talks have accelerated over the past year. Samsung Electronics Chairman Lee Jae-yong and Samsung SDI President Choi Joo-sun outlined a preliminary battery supply plan with Mercedes-Benz executives during meetings held in Seoul last November and during a business trip to Europe in March. Lee has maintained a relationship with Mercedes-Benz’s parent company since his time at Daimler AG, and Samsung has previously supplied infotainment platforms to Mercedes-Benz EVs through its subsidiary Harman.
This partnership would mark the first time Samsung SDI batteries are installed in Mercedes-Benz electric vehicles. The order is projected to cover tens of gigawatt-hours, representing a contract potentially worth over 10 trillion won if finalized on a long-term basis. Mercedes-Benz is expanding its electric vehicle lineup on the Mercedes Modular Architecture platform, which is set to adopt prismatic battery cells.
Mercedes-Benz currently sources pouch, prismatic and cylindrical cells from multiple suppliers, including LG Energy Solution, SK On, CATL and Parisis. Earlier plans for in-house cell production via Automatic Cells Company (ACC) faced delays and yield challenges at ACC’s French plant, which began with an installed capacity of 13 GWh but struggled to scale output. In contrast, Samsung SDI already operates prismatic cell production in Europe, positioning it as a viable alternative to meet Mercedes-Benz’s requirements.
The European Union’s Industrial Acceleration Act underscores the importance of local production and supply chains, prompting automakers and battery manufacturers to secure regional partnerships and long-term agreements.
If Samsung SDI finalizes its agreement, it will become a battery supplier to all three major German luxury automakers, joining its existing commitments to BMW and Volkswagen.
Separately, Samsung SDI is preparing to mass-produce 46-millimeter cylindrical cells at BMW’s factory in Hungary, while LG Energy Solution has secured a contract to supply more than 150 GWh of similar cells to Mercedes-Benz after 2028.
Source: STARNEWS Korea
