The deal, signed at the Andaz Seoul Gangnam hotel on Monday, will see Samsung SDI provide high-performance cells built with high-nickel NCM (nickel, cobalt, and manganese) cathode chemistry for Mercedes-Benz's next-generation electric vehicles.
Samsung SDI CEO Choi Joo-sun and Mercedes-Benz Chairman Ola Kallenius were among senior executives from both companies who attended the signing ceremony.
Under the agreement, the batteries will be fitted in upcoming compact and mid-size electric SUVs and coupe models as Mercedes-Benz seeks to sharpen its electrification lineup. The cells are designed to maximize driving range through high energy density while delivering long cycle life, high power output and Samsung SDI's proprietary safety solutions.
"This partnership represents the union of the innovative DNA that both companies possess," a Samsung SDI spokesperson said said, adding that the contract was significant in securing battery orders aimed at leading the global EV market.
The Mercedes-Benz deal marks Samsung SDI's return to the EV contract table after a string of energy storage deals, including a 1.5 trillion won ($1 billion) agreement in March to supply prismatic ESS batteries to a U.S. energy firm.
The company has been pivoting aggressively toward the fast-growing North American storage market amid sluggish global EV demand, but the latest contract signals it is pursuing both fronts simultaneously.
Samsung and Mercedes-Benz said they also plan to deepen strategic cooperation in next-generation battery development and future mobility technologies.
Shares of Samsung SDI was trading at 540,000 won on 3:21 p.m., 5.26 percent higher than the day before.
Copyright ⓒ Aju Press All rights reserved.
