The next Mercedes-Benz EV could draw power from Samsung cells. Samsung SDI has just signed a multi-year battery supply agreement with Mercedes-Benz, marking the Korean companys first EV battery supply deal with the luxury carmaker.

　　What to expect from this EV battery deal

Samsung SDI has said that the batteries will use high-nickel NCM chemistry and will go into Mercedes-Benzs next-generation electric vehicles. According to the Korea JoongAng Daily report, Mercedes plans to use Samsung SDIs cells in upcoming compact and mid-size electric SUVs and coupe models.

Recommended Videos While the announcement is light on details right now, it is still a notable announcement.

　　Why this is a notable supplier shift for Mercedes

The bigger hoke is that this is Samsung SDIs first battery contract with Mercedes-Benz. Korea JoongAng Daily says Mercedes had previously relied on LG Energy Solution and SK On for EV batteries, while Samsung SDIs automotive battery relationship had long been anchored by BMW.

Meaning, this is just another routine supply extension. It is Mercedes widening its battery sourcing network at a time when automakers are trying to balance range, performance, cost, and long-term supply security. Samsung SDI says its cells are designed to deliver longer driving range, enhanced longevity, high output performance, and in-house safety solutions.

So the german automaker is not betting the whole EV future in one supplier. This also arrives as Mercedes-Benz is pushing into EVs with improved range and charging tech, making this deal seem like a natural next step.