Inside Samsung SDI & Mercedes-Benz US$6.8bn EV Battery Deal

Samsung SDI has signed a multi-year agreement with Mercedes-Benz to supply batteries for EVs for the first time.

Under the agreement, Samsung SDI will supply high performance batteries for Mercedes-Benz's "next generation" of EVs.

Mercedes-Benz achieved a share of 20.5% for EVs in its 2025 total sales, up from 18.5% in 2024, despite total unit sales down 9% compared to the previous year.

The agreement with Samsung SDI

Mercedes-Benz plans to use the batteries in future compact and mid-size electric SUVs and coupe models as part of its strategy to target the next-generation EV market.

The batteries will feature high-nickel NCM (nickel, cobalt and manganese), which Samsung SDI say will deliver high energy density, extended driving range, long lifespan and high power. The batteries will also feature Samsung SDI’s proprietary safety solutions.

In a statement from Samsung SDI, the company says that in addition to the supply agreement, the two companies plan to broaden their strategic cooperation in future mobility, including joint development of next-generation battery technology.

“This partnership brings together the innovative DNA of both companies,” said a Samsung SDI official in a press release, adding, “it is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market.”

The Korea Herald reported that the total contract value exceeds ₩10tn (US$6.8bn).

The signing ceremony was held at Andaz Seoul Gangnam Hotel, attended by Samsung SDI President and CEO, Joo Sun Choi and Executive Vice President and Head of Global Sales, Han Jae Cho, as well as Mercedes‑Benz Group Chairman Ola Källenius, Chief Technology Officer Jörg Burzer and Mercedes‑Benz Korea CEO Mathias Vaitl.

Mercedes-Benz’ EV strategy

Mercedes-Benz, having seen growth in its EV sales in 2025, has a focus on developing EVs, with its CEO focussing on the electric car launches scheduled in a letter to shareholders.

This is despite sales down 9% across its total sales. In Mercedes 2025 Annual Report, Ola Källenius, CEO of Mercedes-Benz cited “volatile tariff policies and intense competition in China as well as “uncertain regulatory framework in Europe” as issues affecting the company. 

The company said it was planning several new EV models going forward, suggesting electrification is a core part of its strategy. Mercedes-Benz achieved a share of 20.5% for EVs in its 2025 total sales, up from 18.5% in 2024. Ola said in the 2025 Annual Report: “This year, we are strengthening it with the new C-Class with its electric range of up to 800 kilometres, along with the new GLE. 

“We are also expanding our presence in the 'Top-End' segment. The first step will be the completely redesigned S-Class followed by the Maybach version. At AMG, we will be introducing the first model based on a new electric architecture.”

Samsung SDI’s EV batteries

The agreement builds on Samsung SDI extensive experience in batteries. Samsung SDI showcased a wide range of battery solutions and "next-generation technologies" at InterBattery in March 2026, including all-solid-state batteries. 

The company also showcased a prismatic battery that achieves an energy density of 700 Wh/L and enables up to 800 km of driving range on a single charge. 

The company said in a statement “with fast‑charging capability and top‑tier power output performance, it is recognised for setting a new benchmark in next‑generation EV batteries”.