Mercedes-Benz Energy and Lohum have announced a strategic partnership to supply repurpose EV batteries. Under this agreement, Lohum is committing to a minimum offtake of 50MWh across multiple second-use modules annually from Mercedes-Benz Energy.
In Asia, Lohum will be the first partner for repurposing EV batteries for Mercedes-Benz Energy. Lohum develops second-life mobility applications that include electric rickshaw and stationary applications, ranging from 6KWh batteries to 1MWh storage systems.
Gordon Gassman, CEO of Mercedes-Benz Energy said, “Lohum is thinking about 2nd life in a very different way than most companies. 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,” says Justin Lemmon, Co-founder and Head of International Operations of Lohum.
Furthermore, he added, “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.”
According to the official statement, once the second-use batteries 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, both the companies will continue to evaluate new collaboration opportunities across regions, says the media release.