Mercedes signed an agreement of 1.5 billion euros with Rock Tech Lithium to promote the development of electric vehicles

CTOnews.com, October 20 (Xinhua)-- Mercedes-Benz announced Thursday that it has signed a supply agreement with Canada-Germany Rock Tech Lithium Inc to receive an average of 10000 tons of battery-grade lithium hydroxide per year.

The deal will allow the luxury carmaker to supply raw materials to its battery partners from 2026, involving a qualification period to rapidly expand production of pure electric vehicles, it said in a statement.

The deal, worth 1.5 billion euros (about 10.605 billion yuan), will provide enough raw materials for lithium hydroxide for 150000 cars a year, the companies said. CTOnews.com learned that the two companies announced not long ago that they would explore a strategic partnership.

Markus Schaefer, a member of the Mercedes-Benz management committee, said: "the large amount of lithium obtained directly from Rock Tech will help Mercedes-Benz promote the localization of the most advanced battery production in Europe."

As part of the deal, Rock Tech Lithium plans to supply batteries to Mercedes-Benz battery partners through a converter in Guben, Germany, to help the German luxury carmaker become fully electrified by the end of the century.

Mercedes-Benz is preparing to launch a series of pure electric models in 2023, including the AMG EQE.