South Korean battery manufacturer Samsung SDI Company announced that it has signed a multi-year agreement with Mercedes-Benz to supply batteries for next-generation electric vehicles (EVs). The company confirmed that this is its first EV battery supply deal with the German automaker, without disclosing the value of the contract.

The signing ceremony took place at the Andaz Seoul Gangnam Hotel, and was attended by Samsung SDI CEO, Joo Sun Choi, along with the company’s head of global sales, Han Jae Cand, Mercedes‑Benz Group chairman Ola Källenius, and the automaker’s chief technology officer (CTO) Jörg Burzer.

As part of the agreement, Samsung SDI will supply high-performance, high-nickel NCM (nickel, cobalt, and manganese) batteries for Mercedes-Benz's next-generation electric vehicles. Samsung SDI said the batteries will have high energy density, delivering extended driving range, long lifespan, and high power, along with Samsung SDI’s proprietary safety solutions. The batteries will be used in next-generation compact and mid-size SUVs and coupe models to be produced by Mercedes-Benz.

The two companies have also agreed to broaden their strategic cooperation in future mobility, including the joint development of next-generation battery technologies.

Samsung SDI said in a statement: “This partnership brings together the innovative DNA of both companies. It is meaningful in that Samsung SDI has secured a battery order aimed at strengthening its position in the global EV market.”