Mercedes-Benz Energy & Lohum Partner for 50 MWh of Second Use Li-ion Battery Modules

Mercedes-Benz Energy and Lohum have entered into a strategic partnership for second-life batteries. The agreement is a multi-year supply contract agreement, under which Mercedes-Benz Energy and Lohum have committed to a minimum offtake schedule of 50 MWh per annum across multiple second life module variants. Lohum is Mercedes-Benz Energy’s first partner in Asia.

The agreement make it possible for Lohum to secure high volumes of second-use battery modules from Mercedes-Benz Energy.

Lohum is a startup that offers lithium-based Energy Storage Solutions and develops second life applications primarily aimed for the Indian stationary 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. Mercedes-Benz delves into the development of energy storage solutions and the integration of vehicle batteries in second life applications as well as spare parts storage. Both the firms focus on sustainability across the battery supply chain and have been working together for close to two years.

Once the second life modules reach end of life, the startup offers a buy-back guarantee to recycle them through its hydromet plant. On the other hand, Mercedes-Benz Energy has access to used inventory across the globe.

“Lohum is thinking about second life in a very different way than most companies,” said Gordon Gassman, CEO of Mercedes-Benz Energy while adding, “Theirs is a truly long-term focus with a keen understanding that one of the biggest challenges for 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.”

“Mercedes-Benz Energy’s model for approaching second 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.”

Lohum, which claims to be India’s largest producer of sustainable Li-ion battery raw materials through recycling, repurposing, and low-carbon refining, and the only integrated battery recycling and reuse company in the world, has footprint in Asia combined and has set foot into into the US market. The twp firms continue to evaluate new collaboration opportunities across regions.

In Greater Noida, Lohum has three facilities: a 2-GWh “reclaim” recycling and extraction plant and two 300 MWh dismantling and repurposing units. Lohum is preparing to build its fourth facility in Greater Noida specifically to meet the increased demand with a goal to scale manufacturing capacity to 50,000 tonnes in the following 4-5 years.