Is Mercedes Set to Source Battery Cells From Samsung SDI Soon?

Why It Matters

Securing Samsung SDI cells diversifies Mercedes’ battery supply chain, strengthens European EV manufacturing, and intensifies competition among global cell makers.

Key Takeaways

• Samsung SDI in final talks to supply Mercedes' MMA platform batteries
• Potential order could reach tens of GWh of prismatic cells
• Negotiations include building a dedicated European production line
• Deal would replace CATL as Mercedes' primary cell supplier
• Austria, Slovakia, Czech Republic shortlisted for Samsung's new plant

Pulse Analysis

Mercedes‑Benz’s upcoming entry‑level electric models on the MMA (Mercedes Modular Architecture) platform require high‑energy prismatic cells, a niche where Samsung SDI has built a strong portfolio. The automaker’s current battery strategy leans heavily on Chinese giants such as CATL, but recent delays at the Automotive Cells Company joint venture and rising costs have prompted a strategic pivot. By courting Samsung SDI, Mercedes aims to secure a reliable supply of NMC and LFP prismatic cells that can be packaged into four large modules, delivering up to 85 kWh per pack for its future CLA, GLA and GLB variants slated for 2028.

Samsung SDI’s interest goes beyond a simple supply contract; the company is evaluating a Europe‑based production footprint to serve Mercedes and other OEMs. Locating a plant in Austria, Slovakia or the Czech Republic would cut logistics costs, meet EU content requirements, and bolster the region’s battery ecosystem that already hosts CATL, LG Energy Solution and ACC facilities. A multi‑GWh order would represent a significant volume boost for Samsung, helping it scale its prismatic cell line and compete more directly with established players in the premium EV segment.

The potential partnership signals a broader shift in the EV supply chain toward diversification and regionalization. For Mercedes, a Samsung SDI source could improve cost predictability and reduce exposure to geopolitical risks tied to Chinese suppliers. For the European market, the new plant would add capacity, create jobs, and support the EU’s climate targets. Analysts will watch the final agreement closely, as it could reshape battery sourcing dynamics and influence pricing across the next generation of affordable electric vehicles.