Mercedes-Benz Turns To SK Innovations As Lithium-Ion Battery Supplier For Future Plug-In Cars

JUN 9 2016 BY STEVEN LOVEDAY 8

Mercedes-Benz GLC 350 e 4MATIC

Mercedes-Benz GLC 350 e 4MATIC

After giving up on making its own cells with joint venture Li-Tec, Mercedes-Benz has chosen SK Innovation to be its provider for lithium ion battery cells going forward. As Mercedes has grand plans to expand its line-up of electric vehicles (mostly PHEVs for now), it will form the cells into battery packs for many upcoming models.

SK has recently doubled its production and capacity in Korea. The company is supplying increased orders and running 24 hours a day, 7 days a week. SK expects to continue expanding current projects along with the Daimler orders.

SK Innovation battery cell

SK Innovation battery cell

Head of Battery & I/E Materials with SK Innovation, Hongdae Kim, explained:

“SK Innovation is planning to strengthen its position in the global battery market with differentiated performance and technology, while reinforcing relationship with the current customers such as Daimler, to prepare for strong growth of the electric vehicle market. Winning a major project with Mercedes-Benz, SK Innovation has become a top-tier supplier, in lead of the global electric vehicle battery market, for best-in-class automotive customers in Korea, China and Europe.”

SK Innovation projects that “the global electric vehicle market will reach 6 Million by year 2020, due to strengthening environmental regulations in Europe, China and US. Specifically, plug-in hybrid and battery electric vehicles are expected to outgrow hybrid electric vehicles.”

This forward move by SK Innovation shows that it has the ability to supply on a global level.

 

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8 Comments on "Mercedes-Benz Turns To SK Innovations As Lithium-Ion Battery Supplier For Future Plug-In Cars"

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Daimler is flailing.

Mercedes is really going to go with just 400 MWh of cells? They announced the expansion from 300 MWh to 700 MWh for a client, which is now identified as Mercedes-Benz. That’s not even 7,000 x 60 kWh BEVs.

PHEVs..?

With 6.2kwh(!) battery for current C-Class phev math will be different)

PHEV batteries are different then BEV ones.

PHEV have very small battery so it needs to handle high charge and discharge rates well.

BEV need max total capacity (and can get good charge & discharge rates by simply spreading it over all those cells it contains).

So that 700MWh may even not be usable in EVs.

PHEVs? LOL. Bad move. I think Tesla has shown that pure EV is the way to win the high-end market. PHEVs are for people that can’t afford a really large battery but still want to be able to make long trips. But you are going to drop $70K on a car, why not get a full EV with a big battery that eliminates all the unpleasantness of ICE and yet can handle long trips.

“After giving up on making its own cells with joint venture Li-Tec, Mercedes-Benz has chosen SK Innovation to be its provider for lithium ion battery cells going forward.”

WOW! Astoundingly bad move on the part of M-B.

They should license LG Chem’s tech for cheaper cells, as Renault has done, and as Renault’s partner Nissan apparently has also. Nissan has its own battery factories, therefore they — like BYD and soon Tesla — won’t be constrained by an outside supplier if and when they decide to ramp up production of long-range plug-in EVs.

I think it won’t be that years now until those legacy auto makers who continue to refuse to invest in their own li-ion battery factories will find themselves in the position of Kodak, watching the disruptive tech revolution leave them in the dust, unable to catch up and finally going bankrupt.