Mercedes-Benz has partnered with Luminar Technologies to jointly develop the latest version of Luminar’s light detection and ranging (LiDAR) sensors, known as Halo, reported Reuters.

Mercedes initially signed a supply deal with Luminar for the LiDAR sensor more than two years ago, intending to implement it in vehicles by the middle of the decade.

The plan has now been replaced by the development agreement for the Halo sensor, which is expected to debut in 2026.

The latest collaboration marks the first deal for Luminar’s compact and efficient Halo LiDAR sensors.

Luminar CEO Austin Russell was cited by the news agency as saying in an interview: “Mercedes is on board an interview. We’re working with them at a global scale to develop and integrate the technology in their vehicles with the ultimate objective to be able to get this into scale production.”

Mercedes-Benz has also been working with other LiDAR suppliers, including Valeo.

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In a statement to Reuters, Mercedes-Benz said: “Mercedes-Benz is also working together with Luminar to evaluate next generation LiDAR technology.”

Russell said that the new deal represents the first step toward a possible supply contract, although no such deal has been finalised.

Some higher-end Mercedes vehicles currently feature Valeo LiDAR systems that support limited autonomous driving.

Mercedes plans to extend automated driving capabilities across more models in its line-up.

The German luxury vehicle manufacturer is also planning to equip its smart driving vehicles, intended for global markets, with China’s Hesai Technology LiDAR sensors.

The decision by Mercedes was made after several months of consideration, following assessment of various legal and geopolitical risks.

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