Mercedes-Benz Signs Lithium Supply Deal With Rock Tech Lithium for EV-Ramp up

Mercedes-Benz AG has finalised a supply agreement with Canadian-German-start-up Rock Tech Lithium Inc. to secure high-quality lithium used in battery production as part of a direct sourcing approach. Starting in 2026, the deal allows Mercedes-Benz to get its battery partners supplied with raw material to rapidly scale up its production of fully electric vehicles.

As part of the agreement, Rock Tech Lithium plans to supply battery-grade lithium hydroxide to the company's battery partners from a converter based in Guben, Brandenburg, Germany.

The agreement represents a roughly total estimated sales volume of approximately €1.5 billion and over 40 percent of the expected annual production from Rock Tech's planned converter capacity in Guben, Germany. 

Lithium hydroxide is needed for the production of lithium-ion batteries which are used in Mercedes-Benz electric vehicles.

The supply agreement provides that both companies will cooperate in creating a roadmap to achieving CO₂ neutral production of lithium hydroxide by the end of 2030.

The Stuttgart-based luxury carmaker plans to go all electric by the end of the decade.

Rock Tech is a cleantech company that plans to source raw material from its own mineral project in Canada as well as procuring it from responsibly producing mines.

In the years to come, the company aims to extract its material from discarded batteries. 

Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement., says: “This significant amount of lithium sourced directly from Rock Tech will help Mercedes-Benz to advance localisation of European production of state-of-the-art battery cells. Together with additional sourcing partnerships in the future, the on average 10,000 tonnes of lithium per annum will play a key role in securing the lithium supply for our battery production in Europe, to help achieve our ambitious electrification goals.”

“Lithium hydroxide from Rock Tech offers Mercedes-Benz the opportunity to support two strategic goals: localized 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”, adds Markus Bruegmann, Chief Executive Officer of Rock Tech Lithium.

Mercedes-Benz has several battery partnerships with multiple providers in different geographies: in Europe ACC and CATL, in the United States Envision AESC and in China Farasis and CATL.