Samsung SDI announced a multi-year electric vehicle battery supply agreement with Mercedes-Benz, marking the South Korean battery maker's first direct supply contract with the German automaker. Under the agreement, Samsung SDI will provide high-energy nickel-manganese-cobalt (NCM) batteries for Mercedes-Benz's future EV models.
The signing ceremony in South Korea was attended by Samsung SDI President and CEO Joo Sun Choi, Mercedes-Benz Group Chairman Ola Källenius and CTO Jörg Burzer. The two companies also plan to expand their strategic cooperation to the joint development of next-generation battery technology. The NCM batteries will be deployed in upcoming compact and mid-size electric SUVs and coupes.
In parallel, Mercedes-Benz unveiled the all-new electric C-Class in Seoul. Production will begin at the Mercedes-Benz Kecskemét plant in Hungary during the second quarter of 2026, with North America deliveries scheduled for early 2027. At its annual shareholder meeting, the company described its current strategy as the "largest product and technology campaign in the company's history," announcing investment of more than €10 billion (roughly $11.8 billion) on new technology this year.
While some automakers, including Ford, have scaled back EV plans, the long-term shift to electrification is expected to continue, making secure battery supply critical for OEMs pursuing electrification at scale. Mercedes-Benz targets sales of around 2 million vehicles over the medium term, with electrified vehicles accounting for roughly 40 percent of total sales.
In March 2025 Samsung SDI began production of its 46-series cylindrical cell, viewed as the next-generation cell format for EVs and offering roughly six times the energy capacity of its 21700 predecessor. The Mercedes-Benz contract is regarded as a key step in Samsung SDI's strategy to expand its global EV customer base.
Key Takeaways:
1. Samsung SDI signed a multi-year NCM battery supply deal with Mercedes-Benz — its first direct supply contract with the automaker.
2. Batteries will power upcoming compact and mid-size electric SUVs and coupes; the two firms also plan joint development of next-generation cells.
3. Production of the new electric C-Class begins in Q2 2026 at Mercedes-Benz Kecskemét, Hungary, with North America deliveries slated for early 2027.
4. Mercedes-Benz will invest more than €10 billion ($11.8 billion) in new technology this year and targets ~40% electrified share of around 2 million vehicles in the medium term.
5. Samsung SDI is leveraging its 46-series cylindrical cell, in production since 2025, to expand its global EV customer base.
