Mercedes Signs 1.5 Billion Eur Deal With Rock Tech Lithium To Push E-Car Drive

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

The deal allows the luxury carmaker to supply its battery partners with raw material, starting in 2026, including a qualification period, in order to rapidly scale up production of fully electric vehicles, it 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," Mercedes-Benz management board member Markus Schaefer said.

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