Mercedes-Benz Energy and Lohum announced a strategic partnership through a multi-year supply contract agreement for second-life batteries. Lohum is Mercedes-Benz Energy’s first partner in Asia as both companies continue to push sustainability across of the battery supply chain.
This agreement includes Mercedes-Benz Energy and Lohum committing to a minimum offtake schedule of 50MWh per annum across multiple 2nd life module variants.
Mercedes-Benz Energy and Lohum have been working together for nearly two years. The agreement will enable Lohum to secure high volumes of second-use battery modules from Mercedes-Benz Energy. Lohum develops 2nd life applications primarily focused on the Indian stationary and non-auto mobility storage markets. Mobility applications include low-power applications such as the electric rickshaw and stationary applications range from small 6KWh batteries to larger 1MWh storage systems.
“Lohum is thinking about 2nd life in a very different way than most companies,” said Gordon Gassman, CEO of Mercedes-Benz Energy. “Theirs is a truly long-term focus with a keen understanding that one of the biggest challenges for 2nd life is the unpredictability of feedstock supply and composition. Lohum is developing expertise and applications across multiple module variants to create a long-term supply funnel. This flexibility and model unlocks value for both parties and defines the innovation and reliability we seek in strategic partnerships.”
“Mercedes-Benz Energy’s model for approaching 2nd life is the most advanced we have seen by far, “ said Justin Lemmon, Co-founder and Head of International Operations of Lohum. In addition to their willingness to regularly test new opportunities for collaboration, they are creating infrastructure and capabilities to maximize sustainability and value for used inventory. The organization possesses deep product knowledge matched by an industry-shaping sales and logistics team. 2nd life remains very nascent and Mercedes-Benz Energy’s creativity, process and commitment to safety has helped us expand our business significantly.”
In addition, once these 2nd life modules reach end of life, Lohum offers a buy-back guarantee to recycle them through its hydromet plant. Both companies believe that wherever it is possible, 2nd life combined with recycling offers the best solution for sustainability and value creation over the long term.
Mercedes-Benz Energy has access to used inventory across the globe. With Lohum’s current footprint in Asia combined with its entrance into the US market, the companies continue to evaluate new collaboration opportunities across regions.