Samsung Stock Surges 5% as $6.8B Mercedes-Benz Battery Deal Goes Official

TLDR

• Samsung SDI signed its first-ever multi-year EV battery supply deal with Mercedes-Benz
• Batteries will use high-nickel NCM chemistry for next-gen compact and midsize EV SUVs and coupes
• Contract value expected to exceed 10 trillion won (~$6.8 billion), with supply volumes in the tens of GWh
• Samsung SDI stock rose 4.87% on the news; Mercedes-Benz fell 2.49%
• The deal adds Mercedes-Benz to Samsung SDI’s European customer list alongside BMW and Volkswagen

Samsung SDI signed its first EV battery supply agreement with Mercedes-Benz on Monday, sending its stock up 4.87%. The deal was announced at a ceremony in Seoul attended by both companies’ top executives.

The batteries will use high-nickel nickel-cobalt-manganese (NCM) chemistry. Samsung SDI says this delivers high energy density, longer range, longer lifespan, and strong power output.

Mercedes-Benz plans to fit the batteries into future compact and midsize electric SUVs and coupe models. Industry sources say the batteries are earmarked for an upcoming 2028 EV model.

Samsung SDI did not officially disclose the deal’s value. However, industry sources put supply volumes at tens of gigawatt-hours, with total contract value expected to top 10 trillion won — roughly $6.8 billion.

The signing ceremony in Seoul brought together Samsung SDI President and CEO Choi Joo-sun, along with Mercedes-Benz Group Chair Ola Kallenius and CTO Jorg Burzer.

A Deal Years in the Making

The partnership didn’t happen overnight. Samsung Electronics Chair Lee Jae-yong had been working to deepen ties with Mercedes-Benz for some time.

In November last year, Kallenius visited South Korea and met Lee at Samsung’s VIP guest house in Seoul. The two discussed potential cooperation across automotive electronics and batteries.

Momentum picked up after Lee traveled to Germany with Samsung SDI President Choi to hold talks with Mercedes-Benz officials directly.

Samsung’s existing relationship with Mercedes-Benz also gave the deal a natural foundation. Samsung subsidiary Harman already supplies the automaker with infotainment platforms and audio systems.

For Mercedes-Benz, the deal broadens a supplier base that already includes Korean battery makers LG Energy Solution and SK On. The company has been actively diversifying its battery sourcing ahead of its next-gen EV rollout.

What It Means for Samsung SDI

The agreement adds Mercedes-Benz to a growing European client list that includes BMW and Volkswagen.

Samsung SDI said the batteries would also feature its proprietary safety technologies, which the company highlighted as a key differentiator in the deal.

Beyond the initial supply agreement, both companies said they plan to expand cooperation to include joint development of next-generation battery technologies and future mobility solutions.

The large order is expected to boost Samsung SDI’s revenue and factory utilization rates. The contract is set to run across multiple years, with production targeting Mercedes-Benz’s 2028 EV lineup.

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