Samsung SDI (006400.KS) will supply electric-vehicle batteries to Mercedes-Benz for the first time, marking a breakthrough with the global premium automaker.
Samsung SDI said Thursday it signed a multi-year contract with Mercedes-Benz to supply next-generation EV batteries at the Andaz Seoul Gangnam hotel in Sinsa-dong, Gangnam district. While the exact volume was not disclosed, the industry estimates the deal at around 10 trillion won ($7.2 billion) over at least five years.
The signing ceremony was attended by Samsung SDI President and CEO Choi Joo-sun, Mercedes-Benz Chairman Ola Källenius, Mercedes-Benz Chief Technology Officer Jörg Burzer and Mercedes-Benz Korea CEO Mathias Vaitl.
Under the contract, Samsung SDI will supply prismatic high-nickel NCM (nickel-cobalt-manganese) batteries to Mercedes-Benz. The German automaker plans to install the batteries in its upcoming compact and mid-size electric SUV coupe models to capture the next-generation EV market.
High-nickel NCM batteries offer high energy density, providing longer driving range, extended lifespan and high-power performance. Samsung SDI's prismatic high-nickel NCM batteries are known for enhanced safety, using an aluminum case to protect cells from external impact, along with vent designs for gas release and No TP (no thermal propagation) technology.
Samsung SDI has been working on the Mercedes-Benz deal since last year. President Choi has maintained online and offline communication with Mercedes-Benz management since taking office early last year to explore cooperation. Samsung Electronics Chairman Jay Y. Lee personally met with Chairman Källenius to lead sales efforts. A dinner meeting in November last year at Samsung's state guesthouse "Seungjiwon" in Hannam-dong, Seoul, attended by Lee, Choi and Källenius, is said to have played a decisive role in clinching the deal.
Lee and Choi further finalized the battery supply plan during a business trip to Europe last month, meeting with Mercedes-Benz officials. Through this contract, Samsung SDI has secured all three German premium automakers — Mercedes-Benz, BMW and Audi — as customers. Samsung Group has also expanded its cooperation with Mercedes-Benz into the battery sector, in addition to Samsung Electronics' automotive electronics subsidiary Harman supplying infotainment platforms.
The two companies plan to continue expanding their strategic partnership in future mobility areas, including advanced development of next-generation batteries. Samsung SDI posted a record operating loss of 1.72 trillion won last year, the worst since its founding, but expectations for a return to profit this year have grown after recent consecutive orders for energy storage system (ESS) batteries and the alliance with Mercedes-Benz in the automotive battery sector.
"This partnership is a combination of both companies' innovation DNA," a Samsung SDI official said. "It is a large-scale battery order aimed at leading the global EV market, which makes it very meaningful."
Meanwhile, with the Samsung SDI contract, Mercedes-Benz's cumulative contracts with Korean battery makers have far exceeded 30 trillion won. Mercedes-Benz has maintained a partnership with LG Energy Solution (373220.KS), signing four supply contracts since 2024, including an LFP (lithium iron phosphate) battery deal last October.
Källenius and other Mercedes-Benz executives will use the Korea visit to hold a world premiere event for the new C-Class and meet major local partners to solidify partnerships. "This visit to Korea is to commemorate an important milestone for Mercedes-Benz," Källenius said. "We aim to unveil the new C-Class — the cornerstone of our multi-year new vehicle launch campaign — in Korea for the first time and lay the foundation for next-generation innovation through strategic cooperation with key Korean suppliers."
