Mercedes-Benz will purchase carbon-neutral lithium hydroxide from a Vancouver-based mining startup for use in the manufacture of electric vehicle batteries. The agreement with Rock Tech Lithium will provide Mercedes-Benz with an average of 10,000 tons of battery-grade lithium hydroxide per year starting in 2026, which is enough for about 150,000 electric vehicles.
Right now, Mercedes-Benz sells about 2 million cars a year worldwide, and the company plans to go all-electric by the end of the century.
Automakers around the world are scrambling to secure supplies of lithium as a way to produce enough electric cars to meet their 2030 goals, especially as they bring more of the battery pack manufacturing process in-house. in September, Chinese electric car maker Azera bought a 12 percent stake in Australian lithium miner Greenwing Resources as it prepares to start producing its own battery packs from 2024 to start producing its own battery packs.
In a statement, Mercedes-Benz Chief Technology Officer Markus Schäfer said the partnership with Rock Tech will play a key role in securing lithium supplies for its battery production in Europe.
Under the agreement, Rock Tech will supply battery-grade lithium hydroxide to the automaker’s battery partners – including Envision AESC in the U.S. and ACC and CATL in Europe – from its plant in Goulburn, Germany. The automaker is also partnering with Farasis and CATL for its China operations.
According to Rock Tech, the agreement represents about $1.5 billion in sales over a five-year term and more than 40 percent of the expected annual production of Goulburn’s planned converter capacity.
Mercedes-Benz said the agreement calls for Rock Tech to source from locations that have been audited by the Initiative for Responsible Mining Assurances. The two companies are expected to work together to develop a roadmap to achieve CO2-neutral production of lithium hydroxide by the end of 2030.
