Samsung SDI Nears Battery Supply Deal With Mercedes-Benz

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Samsung SDI could secure a big deal to supply its electric vehicle (EV) batteries to Mercedes-Benz. The two companies have reportedly reached the final stages of discussions. If it pans out, the batteries will likely power the EV maker’s upcoming 2028 models.

Samsung’s prismatic batteries could power Mercedes-Benz EVs

Samsung’s battery business could see a big win in the global automotive market. According to a report from The Elec, discussions between Samsung SDI and Mercedes-Benz are going toward a final agreement. This is related to the supply of prismatic batteries for electric vehicles. The two companies plan to set up dedicated production bases or manufacturing lines in Europe.

It is worth mentioning that Samsung Chairman Jay Y. Lee and Mercedes-Benz CEO Ola Källenius met in Seoul last November. The initial discussions about the deal likely began at that meeting. Now it has gained strong momentum.

“Projects in Europe have entered the final stages, and the key is establishing large-scale production bases,” said an industry official. “Cost control is difficult with a structure that relies on importing batteries from outside.” They added several potential locations for the new factory, including Austria, Slovakia, and the Czech Republic.

Samsung SDI’s batteries are intended for Mercedes-Benz’s 2028 EV project. While exact volumes are not clear at the moment, they could reach tens of gigawatt-hours (GWh). Since such contracts usually last 7 to 10 years or more, the total deal size could surpass 10 trillion won.

The batteries will likely power vehicles built on Mercedes-Benz’s MMA (Mercedes Modular Architecture) platform, which uses prismatic cells. MMA-based models have already reached the market, beginning with the CLA EV last year. An A-Class–segment EV based on the same platform could also launch in 2028.

Samsung SDI is among the few players in Europe that make prismatic batteries. While CATL also makes such cells in Germany, it mainly supplies to Volkswagen. As a result, the Korean battery maker appears to be a strong potential partner for Mercedes-Benz.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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