Mercedes-Benz and Samsung SDI move to a new stage: premium electric vehicles will receive new generation NCM batteries

Mercedes-Benz concluded a strategic agreement with Samsung SDI on the supply of new-generation batteries for electric vehicles. It is not just about the purchase of components, but about the transition to closer technological cooperation, focused on the long-term development of premium electric vehicle platforms.

Transition from supply to technology partnership

Mercedes-Benz previously worked with several large-scale battery manufacturers, including CATL and SK On. However, the new agreement with Samsung SDI brings cooperation to a level where not only production is key, but also the joint development of solutions for specific automotive platforms.

The contract covers the supply of batteries for future compact and medium-sized electric crossovers and coupes – models that should become the basis of the mass segment of the brand’s electric line.

Why the NCM format was chosen

At the heart of the deal are traction batteries based on nickel-cobalt-manganese (NCM) chemistry. Unlike more affordable LFP solutions, such batteries have a higher energy density.

This gives premium car manufacturers a number of advantages:

• increased range when comparing batteries;
• best dynamics for heavy vehicles, including SUVs;
• stable power output at high loads.

Samsung SDI also claims improved durability and more stable operation of elements, which is especially important for cars with high acceleration dynamics and intensive use.

Strategic cooperation instead of classic procurement

The signing of the agreement in Seoul was a confirmation of deeper integration between the companies. Both parties announced plans to jointly develop next-generation batteries adapted to the architecture of Mercedes-Benz vehicles.

For the German manufacturer, this is a step towards reducing dependence on universal market solutions and moving to customized technological components optimized for their own platforms.

Strengthening the positions of Samsung SDI in Europe

For Samsung SDI, the agreement with Mercedes-Benz is another strengthening of its position on the European market. The company already cooperates with BMW and Stellantis, and now expands the portfolio of partners at the expense of one of the key premium car manufacturers.

Against the backdrop of the instability of global supply chains, such alliances become not just commercial contracts, but an element of strategic stability.

The struggle for quality in the age of electrification

Despite the heterogeneous pace of transition to electric vehicles in different regions, Mercedes-Benz continues to consistently invest in the development of electric technologies. At the same time, the emphasis shifts from mass production to component quality and user experience.

In fact, the company’s strategy is to retain the premium audience by offering electric cars that retain the dynamics, comfort and feel of the “classic” brand.

Against this background, Korean manufacturers continue to strengthen their presence in Europe, gradually redistributing the balance of power in the market of batteries and electric vehicle technologies.