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In its latest bold move to lock down raw materials for electric vehicles, Mercedes-Benz is announcing a new deal with RockTech Lithium for 10,000 tons of battery-grade lithium per year.
Known for its luxury German vehicles, Mercedes Auto is good at upping the ante for what it can do. Now, the automaker is moving fast to secure its future position in the auto market.
With demand for EVs soaring at record levels, automakers from all corners of the world are pouring billions into the first mover, Tesla. Tesla still controls 68% of the EV market, but its lead is slipping as automakers set their sights on an electric-only future.
North America is becoming a hot spot for EV production as President Biden signed the Inflationary Reduction Act (IRA) last week.
A large part of the bill includes tax credits for electric vehicles. However, for automakers to qualify for EVs, the IRA lists specific conditions that must be met. For one, the materials must be manufactured, and the vehicle must go through final assembly in the United States or its fair trade partners.
A number of foreign automakers outside the agreement are looking to ensure EVs qualify. For example, Hyundai is said to be speeding up the timeline to launch the IONIQ EV series in the US.
And on Tuesday, we’re hearing more big news from across the pond. according to Automotive News EuropeTwo German automakers are moving quickly to sign agreements to source raw materials in Canada.
Volkswagen is working to increase battery production and streamline its supply chain to avoid US tariffs and regulations. Meanwhile, Mercedes is working with European automaker Stellantis to build a total of eight battery factories.
With the new lithium deal, Mercedes in 2010 It is one step closer to its goal of universal electrification by 2030.
Mercedes will produce 10,000 tons of lithium every year from 2026
Mercedes has signed a binding agreement with RockTech to supply battery-grade lithium for its EV models. As part of the deal, Rock Tech will supply 10,000 tons of lithium hydroxide per year starting in 2026.
The allies made the news Tuesday as German Chancellor Olaf Scholz visited Canada. Rock Tech is a Canadian mining company focused on extracting lithium to fill the supply gap. The lithium miner plans to open a mine in Lake Georgia, Canada, and is developing the first lithium hydroxide converter in Germany.
With Mercedes planning to launch EVs after 2025, the new deal will be crucial for battery minerals as the German automaker ramps up production.
Perhaps, more importantly, it could help American buyers who want to buy a Mercedes and still get a tax credit. For example, Mercedes sells the EKB, a small electric SUV, starting at $55,000.
The new lithium deal shows Mercedes is willing to do whatever it takes to gain market share in the fast-growing EV market.
Electrek take
This is great news not only for Mercedes, but also good news for Mercedes fans in the United States. With the current tax credit limit (like the EQB) for EV options, Mercedes could be targeting US buyers looking to get the credit.
The German automaker’s deal with Rocktech is the latest news about foreign automakers to secure materials and build EVs in North America.
Hyundai, Volkswagen and Mercedes are rapidly making deals to secure their share of the EV market in the US and internationally. It’s exciting to see the return of automated manufacturing to the United States as a new trend.
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