A recent exclusive report suggests Samsung SDI and Mercedes-Benz are in the final stages of negotiating a major prismatic battery supply deal for electric vehicles launching in 2028.
This potential partnership appears to be driven by a convergence of critical factors, creating a perfect opportunity for both companies. The most significant driver is the supply vacuum created by the halt of the Automotive Cells Company (ACC) gigafactory project. ACC, a joint venture involving Mercedes-Benz, was supposed to be a key source of European-made prismatic batteries. With its plans now on hold, Mercedes faces a pressing need to find a reliable, large-scale alternative supplier to power its next-generation vehicles.
Adding to this pressure are new European Union regulations. The proposed Industrial Accelerator Act (IAA) and the EU Battery Regulation strongly incentivize 'Made in EU' and low-carbon manufacturing. These rules mean that simply importing batteries is becoming less viable. Automakers like Mercedes are now compelled to partner with cell makers who can establish a significant production footprint within the EU to meet these requirements and qualify for potential subsidies.
This is where Samsung SDI fits perfectly into the picture. First, Mercedes' new 'MMA' platform, which will underpin models like the new CLA, is specifically designed for prismatic batteries. This creates a clear, structural demand for the exact type of cell Samsung SDI specializes in. Second, Mercedes has already secured cylindrical batteries from another supplier for its high-performance AMG line, leaving the strategic 'prismatic slot' for its mainstream models wide open. Finally, Samsung SDI is a proven partner for other premium European automakers and has demonstrated its ability to execute large-scale projects, enhancing its credibility as a low-risk choice for Mercedes.
In conclusion, this negotiation is more than just a simple supply agreement. It represents a strategic alignment responding to a collapsed supply chain, new regulatory pressures, and specific technological needs. If finalized, the deal would not only secure a critical component for Mercedes' EV ambitions but also mark a major expansion for Samsung SDI, solidifying its position as a top-tier battery supplier to the European premium auto market.
- Glossary
- Prismatic Battery: A type of battery cell encased in a rigid, rectangular housing, known for its space efficiency and stability.
- MMA (Mercedes Modular Architecture): A next-generation vehicle platform developed by Mercedes-Benz, designed primarily for compact and mid-size electric cars.
- ACC (Automotive Cells Company): A battery joint venture between Stellantis, Mercedes-Benz, and TotalEnergies. Its plans to build gigafactories in Germany and Italy have been put on hold.