Through the signing of a multi-year supply contract deal for second-life batteries, Mercedes-Benz Energy and Lohum have formed a strategic alliance.

As both businesses continue to advance sustainability throughout the battery supply chain, Lohum is Mercedes-Benz Energy’s first partner in Asia. Mercedes-Benz Energy and Lohum have agreed to a minimum off-take schedule of 50 MWh annually across several 2nd life module types as part of this deal.

Advertisement

Lohum and Mercedes-Benz Energy have been collaborating for almost two years. With the help of the arrangement, Lohum will be able to purchase large quantities of second-use battery modules from Mercedes-Benz Energy.

Today, Lohum develops second-life applications particularly for the stationary storage and non-automobile mobility industries in India.

Low-power uses for mobility, such as the electric rickshaw, are available, whereas compact 6KWh batteries  to larger 1MWh storage systems are used for stationary applications.

“Lohum is thinking about 2nd life in a very different way than most companies, ” said Gordon Gassman, CEO of Mercedes-Benz Energy. “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.

Additionally, Lohum provides a buy-back guarantee to recycle these second-life modules through its hydromet plant once they reach the end of their useful lives. Both businesses consider recycling and second life to be the optimum combination for sustainability and long-term value development wherever it is practical.

Mercedes-Benz Energy has access to pre-owned stock anywhere. Given Lohum’s current presence in Asia and its recent entry into the US market, the two businesses are always looking into new international collaboration opportunities.