Mercedes-Benz and Samsung SDI ink long-term battery deal shaping future premium electric vehicle lineup strategy.
On Monday, April 20, Mercedes-Benz and Samsung SDI formalized a deal that will directly influence the German automaker’s future electric lineup. This isn’t a one-off supply agreement—it’s a multi-year contract that already outlines battery strategy for the brand’s next generation of EVs.
The signing ceremony brought together Samsung SDI President and CEO Joo Sun Choi and Mercedes-Benz Group CEO Ola Källenius. They were joined by Mercedes Chief Technology Officer Jörg Burzer, Korea market head Mathias Vaitl, and global sales chief Han Jae Cheol. For the premium EV segment, the agreement sends a clear signal about long-term direction.
At its core, the deal is straightforward: Samsung SDI will supply Mercedes with high-performance traction batteries based on NMC (nickel-manganese-cobalt) chemistry. Compared to LFP batteries, NMC offers better overall performance—especially in energy density and range—though it comes at a higher development cost. The focus here is on maximizing driving range and durability, particularly as new electric sedans are beginning to deliver between roughly 370 and 560 miles on a single charge.
Mercedes already has a benchmark in its lineup with the flagship EQS, but this partnership goes beyond supply. Both companies confirmed plans to collaborate on next-generation battery technologies. That could eventually include localized battery production in Europe, an increasingly important factor given regional regulations and supply chain pressures.
NMC batteries are expected to power the next wave of Mercedes EVs, including compact cars, midsize SUVs, and coupes. Against this backdrop, attention is turning to the next-generation A-Class. Its debut has been pushed back more than expected due to shifting market conditions, with a launch now projected around 2028. Reports suggest it will share key elements with the CLA, which has been performing strongly—especially in its electric variants developed in Affalterbach.
Meanwhile, prototypes continue to surface. Recently, a fully camouflaged AMG CLA 45 Shooting Brake was spotted testing on the Nürburgring Nordschleife. The electric model is expected to produce close to 550 horsepower, placing extreme demands on battery performance—similar to other upcoming AMG EVs currently in development.
For Samsung SDI, the agreement is part of a broader strategy. The company has openly stated its goal of reducing reliance on China-centric supply chains and positioning itself as a serious competitor to dominant players like CATL and BYD. This deal reinforces its standing among top-tier global suppliers.
Samsung SDI is also maintaining its partnership with Stellantis through a joint venture based in Indiana. However, Stellantis has recently scaled back its electrification plans, leading to lower-than-expected battery demand compared to projections made in 2021 under former CEO Carlos Tavares. The joint venture remains active, but Samsung is clearly diversifying.
In March, Samsung SDI also confirmed a major materials supply deal with South Korea’s L&F worth approximately $1.47 trillion. The agreement, set to begin next year, runs for three years with an option to extend for another three—further strengthening its long-term battery supply chain.