Samsung SDI is in advanced talks to supply batteries for next-generation electric vehicles from Mercedes-Benz, in what could mark the South Korean company's first entry into the German automaker's EV lineup.
According to industry officials cited by the Korean publication The Elec, the two companies are in the final stages of negotiations over the supply of prismatic batteries for vehicles scheduled for the 2028 model year. The broad contours of the project have largely been agreed upon, with discussions now centered on how to structure production in Europe.
One option under consideration would be to dedicate specific production lines — or even an entire manufacturing facility — in Europe exclusively to Mercedes-Benz. Industry executives say such an arrangement would help control costs and ensure stable, large-scale supply, particularly given the size of the program.
Potential sites for a new plant include Austria, Slovakia, and the Czech Republic, according to people familiar with the matter.
This approach would mirror the model adopted by LG Energy Solution, which established dedicated production lines at its Michigan facility to supply Toyota Motor with electric vehicle batteries.
People involved in the discussions say the Mercedes project is expected to involve substantial volumes, likely centered on prismatic cells — a format favored by some European automakers for its durability and packaging efficiency. While final supply volumes have not been disclosed, industry estimates suggest the deal could reach tens of gigawatt-hours annually.
Given the long product cycles typical of automotive platforms, battery supply agreements of this kind often span seven to ten years or more. With battery prices typically exceeding KRW100 billion (approx. US$67 million) per gigawatt-hour, the total contract value could surpass KRW10 trillion. The batteries are likely to be used in vehicles built on Mercedes-Benz's upcoming Mercedes Modular Architecture (MMA) platform, which is expected to underpin a new generation of entry-level electric models, including an A-Class–sized vehicle planned for release around 2028.
Samsung SDI is among a limited number of manufacturers in Europe capable of mass-producing prismatic battery cells. CATL, the Chinese battery giant, also produces prismatic cells at its German facility, though much of that output is currently supplied to Volkswagen.
Securing Mercedes-Benz as a customer — following BMW and Volkswagen — would significantly strengthen Samsung SDI's position within the supply chains of Germany's three leading luxury automakers.
Article translated by Elaine Chen and edited by Jerry Chen
