Mercedes-Benz Works With Rock Tech To Source 10K Tons Of Lithium
Mercedes-Benz Making Moves For Raw Materials
The latest and greatest daring move of the luxury German automaker, Mercedes-Benz is to gather raw materials for its electric vehicles; this comes after revealing a new deal with Rock Tech Lithium for 10,000 tons of battery-grade lithium annually.
The posh Mercedes-Benz is known for raising the standard of what an automobile is capable of. This time, the car manufacturer is making quick moves to lock its future position in the automotive market.
As part of the demand for electric cars, which continues to rise at record levels, car manufacturers worldwide are pouring billions of dollars to catch up to Tesla. This electrified giant still controls 68% of the EV market. However, it’s slowly slipping its grip as automakers are centered on an electric-only future.
Seeing how President Biden recently signed the Inflation Reduction Act (IRA), North America is becoming a desirable spot for EV production.
A large part of this bill consists of tax credits for electric vehicles. For all that, for automakers’ EVs to even qualify, the IRA lays out specific conditions that must be met. For instance, the materials must be sourced, and the vehicle needs to undergo final assembly in North America or its fair-trade partners.
Several of these foreign automakers that are excluded from the deal are making moves to ensure that their EVs qualify. Case in point, Hyundai is supposedly ramping up its timeline so that its Ioniq EV series is on US territory.
Last week, we learned from Automotive News Europe that two German automakers are also making swift moves, such as signing deals for raw materials sourced in Canada.
Volkswagen is working on rationalizing its supply chain to increase battery production and keep clear of US tariffs and regulations. At the same time, Mercedes-Benz collaborates with its friendly rival and European car manufacturer, Stellantis, to produce eight battery plants.
With the help of the new lithium agreement, Mercedes-Benz is just a bit closer to its target of a fully-electric lineup by 2030.
10,000 Tons Of Lithium Per Year
To elaborate, Mercedes-Benz signed a binding agreement with Rock Tech to endow battery-grade lithium for its electric models. Part of this deal with Rock Tech involves delivering 10,000 tons of lithium hydroxide a year by the start of 2026.
The business companions released the news last week, Tuesday (Aug 23), as German Chancellor Olaf Scholz visited Canada. Rock Tech Lithium is a Canadian-based mining company centered on removing and expelling lithium to fill the supply gap. The lithium miner intends to operate a mine in Georgia Lake, Canada, and is working on its first lithium hydroxide converter in Germany.
Since Mercedes-Benz is only planning on releasing electric models after 2025, the new deal will be integral for battery minerals as the luxury automaker increases production.
Quite possibly, more notably, it may help North American buyers seeking to buy a Mercedes vehicle and still benefit from that tax credit. An example is the company releasing the EQB, a small electric SUV with a starting price of $55,000 (plus destination fee).
The new lithium deal signifies that Mercedes-Benz is willing to do what it needs to gain market share in the ever-growing EV market.
Mercedes-Benz of Washington
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