Samsung is lining up a big EV battery win with Mercedes-Benz

Samsung and Mercedes-Benz are reportedly in the final stages of negotiations for a potential partnership focused on prismatic batteries for electric vehicles.

This potential collaboration stems from Samsung Chairman Jay Y. Lee’s efforts. The idea gained momentum when Lee met Mercedes-Benz Chairman Ola Källenius in Korea last November.

If the two companies reach an agreement, Samsung SDI will supply the German carmaker with prismatic batteries for its upcoming 2028 electric vehicles. It would mark the first time Samsung’s EV batteries are used in a Mercedes model.

Mercedes-Benz initially planned to source EV batteries for its 2028 models from AAC (Automotive Cells Company) — a joint venture between Mercedes-Benz, Stellantis, and Saft.

However, due to yield issues, production delays, and rising costs, AAC has abandoned plans to expand its factory footprint in Germany and Italy.

This shift opened the door for Samsung to step in as a potential EV battery supplier. If the two companies strike a long-term deal, Samsung may establish new manufacturing bases and supply lines in Europe.

An unnamed industry official cited by The Elec said: “Candidate sites for the new factory include Austria, Slovakia, and the Czech Republic.”

A new factory in Europe would not only help Mercedes-Benz keep EV battery costs in check but also create new jobs.

Overall, a collaboration between Samsung and Mercedes-Benz feels like a natural fit. The German carmaker is already working with Samsung subsidiary Harman on infotainment systems for its EVs.