Mercedes-Benz Energy and Lohum are excited to unveil a long-term partnership through a multi-year supply contract for second-life batteries. Lohum is the first Asian partner for Mercedes-Benz Energy as the two companies work towards sustainability in the battery supply chain. Under this agreement, Mercedes-Benz Energy and Lohum pledge to purchase a minimum of 50 MWh per year of various second-life battery modules.
Mercedes-Benz Energy and Lohum have been collaborating for nearly two years, and this new agreement will allow Lohum to obtain a large number of second-use battery modules from Mercedes-Benz Energy. Lohum primarily focuses on developing second-life applications for the Indian stationary and non-automobile mobility storage markets. These applications include low-power options such as electric rickshaws, as well as stationary systems ranging from small 6 KWh batteries to larger 1 MWh storage systems.
The #EVrevolution just got greener!@Mercedes-Benz Energy and @Lohum have signed on a multi-year #partnership! Enabling us to offtake 50MWh of second-use #battery cell modules from Mercedes-Benz Energy per annum, for #repurposing https://t.co/kII1CarrL5
— LOHUM (@lohum) January 4, 2023
“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.”
Furthermore, when these second-life modules reach the end of their life, Lohum provides a buy-back guarantee to recycle them through its hydromet plant. Both Mercedes-Benz Energy and Lohum believe that, whenever possible, using second-life batteries in combination with recycling is the most sustainable and valuable option for the long term. Mercedes-Benz Energy has access to used batteries from around the world, and with Lohum’s presence in Asia and its expansion into the US market, the two companies are exploring additional opportunities for collaboration in various regions.