Mercedes-Benz & Lohum collaborate on 2nd life batteries
Mercedes-Benz Energy and the Indian company Lohum have agreed to a multi-year supply contract for used electric vehicle batteries. Mercedes-Benz Energy and Lohum have agreed to a minimum purchase of 50 MWh per year in the form of several second-life module variants.
The two companies say they have already been collaborating for 2 years. Lohum is Mercedes-Benz Energy’s first partner in Asia. Lohum currently operates across Asia, and combined with its entrance into the US market, the two companies say they are continuing to evaluate new collaboration opportunities across regions.
Lohum claims to be India’s largest producer of sustainable Li-ion battery raw materials through recycling, reuse and low-carbon refining. The company develops 2nd-life applications primarily focused on the Indian market for stationary and non-automotive storage. Mobile applications include electric rickshaws, for example. Stationary storage ranges from small systems of six kWh to 1 MWh storage systems. Lohum also offers a buy-back guarantee to recycle the second life batteries through its hydromet plant.
“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.”
Lohum is the first partner in Asia with which Mercedes-Benz Energy aims to further advance a circular battery supply chain. Given Lohum’s current presence in Asia and entry into the US market, the companies continue to explore new opportunities for collaboration in different regions.
“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 organisation 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.“
Batteryloop, Stena Recycling’s subsidiary specialising in the aftermarket use of used electric vehicle batteries, will also reportedly use Mercedes-Benz batteries for stationary energy storage in the future.
