Samsung SDI Secures €5.7 Billion Deal with Mercedes-Benz

Samsung SDI will deliver nickel-cobalt-manganese (NCM) battery cells to Mercedes-Benz for mid-range SUVs and coupes under a contract confirmed on May 2. This contract strengthens Samsung SDI's collaborations with major automotive groups, now including Mercedes-Benz, BMW, and Volkswagen, thereby reducing dependence on single customers.

Concurrently, POSCO Future M reported a return to profitability in Q1 2026, supplying essential materials for battery production. POSCO Holdings also invested $765 million in Australian lithium mines to stabilize raw material costs, securing access to 30% of lithium concentrate.

Additionally, energy storage system (ESS) projects in Europe, particularly in Germany and Finland, are advancing, providing Samsung SDI with alternatives to the automotive market. Market volatility is reflected in Samsung SDI's stock performance, which increased over 153% year-to-date, despite a 3.3% drop recently. Investors are advised to monitor developments in production facilities and global trade regulations as profitability in the premium segment remains a key focus.