Mercedes signs $1.5B deal with Rock Tech Lithium to boost EV output

BERLIN — Mercedes-Benz has signed a supply agreement with Canadian-German Rock Tech Lithium to receive on average 10,000 tons of battery-grade lithium hydroxide per year, the automaker said.

The deal allows the automaker to supply its battery partners with raw material, starting in 2026, including a qualification period, in order to rapidly scale up production of full-electric vehicles, Mercedes said in a statement.

The deal, which comes shortly after the two groups said they would explore a strategic partnership, has a volume of 1.5 billion euros ($1.47 billion) and will cover enough lithium hydroxide for 150,000 cars a year, the companies said.

“This significant amount of lithium sourced directly from Rock Tech will help Mercedes-Benz to advance localization of European production of state-of-the-art battery cells,” Markus Schaefer, head of development at Mercedes parent Daimler, said.

As part of the deal, Rock Tech Lithium plans to supply Mercedes battery partners from a converter based in Guben, Germany, helping the automaker to go all-electric by the end of the decade where market conditions allow.

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