Mercedes-Benz finalises deal with Rock Tech lithium to push its electric vehicle production.

Mercedes-Benz confirmed a supply agreement with a Canadian-German company called Rock Tech Lithium Inc. Part of the deal will involve securing high-quality lithium used in battery production as part of their direct supply chain. This allows the German-based luxury automaker to get its battery partners supplied with raw materials in order to increase its production of fully electric vehicles. Supposedly starting in 2026 which includes the qualification period.  

Mercedes intends to go all-electric by the end of this decade, regardless of the market conditions. Rock Tech Lithium plans to supply battery-grade lithium hydroxide from a converter based in Brandenburg in Germany. As it is the lithium hydroxide that is required for the production of lithium-ion batteries, which are used in Mercedes’ electric cars.

According to Mercedes’ website, the Chief Executive at Rock Tech is chuffed with its partnership and new business deal. After the deal was finalised, he said "Lithium hydroxide from Rock Tech offers Mercedes-Bent the opportunity to support two strategic goals: localised and reliable sourcing as well as production under high sustainability standards. We are very pleased to have found a partner that will take important steps with us towards a more resilient lithium supply chain and demonstrates trust in us to deliver an important part of their strategy and of the e-mobility transformation".

The agreement between the two will only stay intact if both companies cooperate in the development of a strategy to achieve CO2-neutral production of lithium hydroxide by 2030. Additionally, the supply agreement will involve on average 10,000 tonnes of battery-grade lithium hydroxide per year, which is enough for approximately 150,000 electric vehicles.

Mercedes strongly believes in respect and protection of the environment and as a result, the choice of partners is vital for its business. The automaker continues working on finding levers for the consistent reduction of CO₂, as well as, forming new partnerships to reduce the number of rare earth metals per electric drive.

(sources: Mercedes-benz.com, investing.com)