Mercedes-Benz Follows in Tesla's and GM's Footsteps, Secures Raw EV Battery Materials

Multiple studies and reports have shown in the past that battery-electric vehicles (BEVs) leave the factory with a larger carbon footprint than gas- or diesel-powered cars. Detractors have been using this piece of information to campaign against the transition to zero-tailpipe emission vehicles. Albeit correct, the thing these people kept talking about was missing an important part – the longer a BEV is being used, the better it is for the environment. Unlike a traditional car, a BEV doesn’t burn fossil fuels, which means there are no greenhouse gasses released into the air every time it’s being used.

Well, Mercedes-Benz takes it a notch further with this partnership it just announced with Rock Tech Lithium. Soon, the German automaker will shorten the supply chain for raw materials needed in all-electric vehicle batteries, which is great news for the out-the-door carbon footprint. Simply put, having a refiner close by means fewer transportation needs for goods, so the overall shorter supply chain also becomes cheaper, which might even reflect in the price the customer must pay.

Rock Tech Lithium must provide Mercedes-Benz with enough raw material for 150,000 BEVs every year starting in 2026.

Furthermore, Mercedes-Benz and Rock Tech Lithium will work together to completely neutralize the carbon emissions associated with lithium hydroxide production by 2030, which can potentially reduce the carbon footprint of European-made BEVs even further.

Better yet, the startup is a German-Canadian venture, and that’s a reassuring thing for investors because Canada has one of the best mining and refining companies out there. That’s why, for example, Thacker Pass is going to be mined by Lithium Americas – another Canadian company with expertise in, as the name suggests, the lithium department. That’s where General Motors (GM) chose to invest so it can have the necessary metals for its batteries.

Even though Tesla’s CEO believes that iron-based batteries might be the future of low-cost BEVs, the American carmaker is on track to open its refinery in Texas even though most of its batteries currently come from China. It’s getting easier and easier to understand why the world’s most well-known auto brands are in a race to secure these vital metals and some are (finally) doing it well by also considering the environment and the feasibility of a long-term, sustainable supply chain.

But back to Mercedes-Benz, the brand does not end this partnership announcement here. It also intends to support Europe in becoming a key player in the BEV sector together with Stellantis and France’s Total Energies by investing in the Automotive Cells Company (ACC). Rock Tech Lithium will supply the raw materials (high-grade lithium hydroxide) and ACC will make sure they end up in the right battery packs with the best chemistry currently available for scaling up manufacturing. It's an effort that spans across several countries of the Old Continent, including some Eastern European ones!

But this is mostly going to be possible thanks to the company's plants in Germany, France, and Italy. The involved automakers will benefit from not having to import batteries from outside the EU. It sounds simple, but this takes a lot of planning and many smart investments, which is why we consider this development a good step forward for Europeans, albeit a tad bit late.

Finally, even though Europe, Japan, and Australia may wish to fight America and China’s BEV dominance with fuel-cell electric vehicles (FCEVs), Germany’s auto industry doesn’t want to leave BEVs behind, so Mercedes-Benz is also making sure to develop a high-power charging network that is going to use only renewable energy to help its customers enjoy a guilt-free experience. Interestingly enough, the first such stalls are scheduled to appear in the U.S., where the Stuttgart-based brand already found a partner in MN8.