Samsung SDI Expands EV Battery Supply in Europe With New Mercedes-Benz Deal
In Focus
- Samsung SDI will supply Mercedes-Benz with batteries for EVs
- The company will supply batteries that use nickel-cobalt-manganese (NCM) materials
- The EV battery partnership between SDI and Mercedes-Benz will extend beyond batteries
Samsung SDI has inked a multi-year deal to supply Mercedes-Benz with batteries for electric vehicles. The Samsung SDI Mercedes deal is the first that the South Korean battery maker has signed with the German automaker.
Samsung SDI to Supply NCM Batteries
Under the latest deal, Samsung SDI will supply batteries that use high nickel-cobalt-manganese (NCM) materials to power Mercedes-Benz’s next-generation EVs. The batteries are designed to maximize driving range and feature 90% nickel content. The German automaker plans to use these batteries in mid-size and compact electric SUVs and coupe models.
Mercedes-Benz will likely use the batteries in electric car models built on the Mercedes Modular Architecture platform, which is expected to underpin A-Class-level EVs. Mercedes plans to launch A-Class-level EVs in 2028.
SDI’s EV battery partnership points to a shift in Europe’s supply chain. Previously, Mercedes-Benz planned to source prismatic batteries in the region through the Stellantis-TotalEnergies joint venture, Automotive Cells Company (ACC). However, yield problems, rising costs, and production delays disrupted these plans.
Only a few suppliers in Europe are capable of producing prismatic batteries. CATL produces these types of batteries at its German plant. However, the company primarily supplies Volkswagen, making Samsung SDI a viable alternative to ACC.
How Samsung SDI Signed the Deal
SDI’s battery deal with Mercedes-Benz is reportedly worth 10 trillion won ($6.8 billion). The company finalized the agreement after Samsung Electronics chairman Lee Jae-yong met with Mercedes-Benz executives multiple times. While SDI did not disclose actual supply volumes, battery power capacity could reportedly reach tens of gigawatt-hours.
According to Samsung, the EV battery agreement between SDI and Mercedes was signed in Seoul on April 20, 2026. Samsung SDI President and CEO Choi Joo-sun and Mercedes-Benz Group Chairman Ola Källenius participated in the signing ceremony.
Other company representatives in the event were SDI’s Head of Medium and Large Battery Business, Heo Eun-gi, and Mercedes-Benz Chief Technology Officer, Jörg Burzer.
The agreement is a strategic opportunity for Samsung SDI. The company already supplies EV batteries to BMW and Volkswagen, and adding Mercedes-Benz deepens its foothold with Germany’s premium carmakers. The company is also scaling up work with BMW on 46mm cylindrical batteries, with production set to start at its Hungary plant.
Exploring Future Partnerships
The EV battery supply chain partnership is expected to extend beyond batteries. The two companies are already exploring ways to widen cooperation across Samsung subsidiaries. These include automotive electronics solutions, displays, and semiconductors. Samsung has already signed chip supply deals with American companies, including Elon Musk’s Tesla.
Mercedes-Benz’s electric vehicle business is rebounding. First-quarter EV sales rose 11% year-on-year to 50,400 units, led by demand for the new electric CLA. EVs now make up roughly 10% of the company’s total sales.
