Expanding its footprints in battery solutions, Mercedes-Benz Energy has signed a strategic partnership with Lohum for a multi-year supply contract agreement for second-life batteries.
As per the understanding, Lohum becomes Mercedes-Benz Energy’s first partner in Asia, where it will offtake a minimum 50MWh per annum across multiple 2nd life module variants.
The companies 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.
At present, Lohum develops second-life applications primarily focused on the Indian stationery 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.
Gordon Gassman, CEO, of Mercedes-Benz Energy said, “Lohum is thinking about second life in a very different way than most companies. Theirs is a truly long-term focus with a keen understanding that one of the biggest challenges for a second 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.”
Justin Lemmon, Co-Founder & Head of International Operations, Lohum said, “Mercedes-Benz Energy’s model for approaching second life is the most advanced we have seen by far. 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. Second 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 second-life modules reach end-of-life Lohum offers a buy-back guarantee to recycle them through its hydromet plant.
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.