Mercedes indicators 1.5 billion eur cope with Rock Tech Lithium to push e-car drive

BERLIN : Mercedes-Benz has signed a provide settlement with Canadian-German Rock Tech Lithium Inc to obtain on common 10,000 tons of battery-grade lithium hydroxide per yr, the German carmaker mentioned on Thursday.

The deal permits the luxurious carmaker to provide its battery companions with uncooked materials, beginning in 2026, together with a qualification interval, with a view to quickly scale up manufacturing of totally electrical automobiles, it mentioned in a press release.

The deal, which comes shortly after the 2 teams mentioned they might discover a strategic partnership, has a quantity of 1.5 billion euros ($1.47 billion) and can cowl sufficient lithium hydroxide for 150,000 automobiles a yr, the businesses mentioned.

“This vital quantity of lithium sourced instantly from Rock Tech will assist Mercedes Benz to advance localization of European manufacturing of cutting-edge battery cells,” Mercedes-Benz administration board member Markus Schaefer mentioned.

As a part of the deal, Rock Tech Lithium plans to provide Mercedes-Benz battery companions from a converter primarily based in Guben, Germany, serving to the German luxurious carmaker to go totally electrical by the tip of the last decade the place market circumstances enable.

($1 = 1.0217 euros)

(Writing by Rachel Extra and Christoph Steitz; Modifying by Maria Sheahan)