Listen "Could Mercedes be Samsung’s next big battery, chip client?"
Episode Synopsis
This article is by Sarah Chea and read by an artificial voice.
Mercedes-Benz Chairman Ola Källenius's potential meeting with Samsung Electronics Executive Chairman Lee Jae-yong next week is heightening expectations of the two companies' collaboration to expand into the battery and display sectors.
The meeting has drawn particular interest as Samsung has yet to supply batteries to Mercedes, despite being a longtime supplier to other German premium brands like BMW and Audi.
Källenius is reportedly arranging a meeting with Lee during his visit to Korea to attend a press conference for local media set for Nov. 14, according to multiple reports. Samsung SDI CEO Choi Joo-sun and Samsung Display CEO Yi Chung are reportedly to join the meeting.
The meeting, if realized, is expected to focus on chips and batteries, areas where their partnership has yet to take concrete shape.
Samsung and Mercedes have historically collaborated on display technologies, including tablet PCs installed in the rear seats of the S-Class and infotainment monitors used in select models. Samsung has also supplied its Samsung Wallet digital key for major Mercedes models, allowing drivers to unlock and start their vehicles without a physical key.
Mercedes currently uses batteries supplied by only LG Energy Solution and SK On for its EVs.
The two titans' meeting will also likely give fresh momentum to the ongoing talks over Samsung supplying organic light-emitting diode (OLED) panels for Mercedes vehicles.
Meanwhile, Källenius is also expected to hold meetings with LG Energy Solution, the country's largest battery maker. In March, he reportedly met privately with major LG affiliates, including LG Electronics, LG Energy Solution, and LG Display.
Lee has been rapidly expanding his engagement with global EV firms recently, including Tesla CEO Elon Musk, Xiaomi CEO Lei Jun, and BYD Chairman Wang Chuanfu, signaling a clear strategy to position the automobile sector as its next growth engine.
One of the most notable examples is the longstanding battery alliance between Samsung SDI and BMW, which has spanned nearly two decades. The partnership began in 2009, when BMW selected Samsung SDI as its exclusive supplier of EV batteries. The two companies also signed a 2.9 billion euros ($3.35 billion) battery supply contract covering the period from 2021 to 2031.
Chairman Lee held a meeting with BMW Chairman Oliver Zipse during his visit to Korea in December 2022 at the BMW Driving Center in Incheon.
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