Distributed Energy Resources, GHG Emissions, Industrial - October 20, 2022
Mercedes-Benz Signs Lithium Supply Deal For EVs
Mercedes-Benz AG finalized a supply agreement with Canadian-German start-up Rock Tech Lithium Inc. to secure high-quality lithium used in battery production.
Starting in 2026, including a qualification period, this allows the Stuttgart-based luxury carmaker to get its battery partners supplied with raw materials to rapidly scale up its production of fully electric vehicles.
Mercedes-Benz plans to go all-electric by the end of the decade, requiring the brand with the three-pointed star to open new sources of raw materials with new partners. As part of the agreement, Rock Tech Lithium plans to supply battery-grade lithium hydroxide to Mercedes-Benz battery partners from a converter based in Guben, Brandenburg, Germany. Lithium hydroxide is needed for the production of lithium-ion batteries which are used in Mercedes-Benz electric vehicles.
“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. Together with additional sourcing partnerships in the future, the on average 10,000 tons of lithium per annum will play a key role in securing the lithium supply for our battery production in Europe, to help achieve our ambitious electrification goals”, said Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement, in a statement.
The supply agreement provides that both companies will cooperate in creating a roadmap to achieving CO2 neutral production of lithium hydroxide by the end of 2030. Additionally, it requires that all lithium hydroxide supplied by Rock Tech shall be sourced from mining sites audited by the Initiative for Responsible Mining Assurances.