What’s Happening: Mercedes-Benz has broken ground on a new converter plant in Guben, Brandenburg, in partnership with German-Canadian startup Rock Tech Lithium. The plant will supply Mercedes-Benz battery partners with high-grade lithium hydroxide for the production of fully electric vehicles.
Why It Matters: The partnership is part of Mercedes-Benz’s strategy to achieve sustainability, raw materials security, and localisation of procurement for its EV ramp-up in Europe. It also marks a milestone in the company’s efforts to deepen its vertical integration of drive technologies in Germany and Europe.
Key Points:
- Mercedes-Benz signed an agreement with Rock Tech last year for the supply of high-grade lithium hydroxide to cover an amount sufficient for around 150,000 fully electric vehicles.
- The strategic partnership between Mercedes-Benz and Rock Tech was announced following the signing of a memorandum of understanding between Mercedes-Benz AG and Canada.
- Under the supply agreement, the two companies will cooperate to create a roadmap for achieving net carbon-neutral production of lithium hydroxide by the end of 2030.
- Mercedes-Benz’s battery plants in Germany and Poland will play a key role in the company’s EV ramp-up, and battery cells will be supplied by the European factories of the Automotive Cells Company (ACC).
- Mercedes-Benz has taken an equal stake in ACC along with Stellantis and Total Energies with the goal of building a European battery champion with global ambitions.
- Mercedes-Benz is pursuing the goal of sustainable, closed-loop recycling of battery materials and cutting resource consumption. The company recently began construction of its own battery recycling plant in Kuppenheim (Germany).
- Mercedes-Benz has also announced plans to push ahead with the development of a high-power charging network in Europe.
Bottom Line: Mercedes-Benz’s partnership with Rock Tech Lithium for a local lithium plant in Germany marks an important milestone in the company’s efforts to achieve sustainability, raw materials security, and localisation of procurement for its EV ramp-up in Europe. The company is pursuing a range of initiatives, including the development of a high-power charging network and a battery recycling plant, as part of its “Ambition 2039” sustainable corporate strategy.
