Lithium-ion battery recycler Lohum Cleantech has inked an agreement with Mercedes-Benz Energy (MBE) to annually offtake at least 50MWh across several second-use battery modules from MBE.
Lohum becomes MBE's first partner in Asia for battery repurposing activities
Lithium-ion battery recycler Lohum Cleantech has inked an agreement with Mercedes-Benz Energy (MBE) to annually offtake at least 50MWh across several second-use battery modules from MBE.
The Indian start-up becomes MBE’s first partner in Asia to repurpose such modules. MBE and Lohum have been working together for two years and the new agreement allows Lohum to secure high volumes of MBE’s second-use battery modules.
Lohum repurposes battery applications primarily for the Indian stationary and non-auto mobility storage markets. “Lohum is thinking about second life in a very different way than most companies. Lohum is developing expertise and application across multiple module variants to create a long-term supply funnel,” said Gordon Gassman, CEO of Mercedes-Benz Energy.
Lohum had previously expressed its wish to expand its international presence and to invest in the US and EU in order to cater to the global EV ecosystem. Since the raw materials required for manufacturing lithium-ion batteries are not widely available, in addition to the world’s move towards more sustainable energy, recycling chain holds a lot of value in the EV ecosystem.
On their partnership with MBE, Justin Lemmon, co-founder of 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 maximise sustainability and value for used inventory.”
He added, “Second life remains very nascent and Mercedes-Benz Energy’s creativity, process, and commitment to safety has helped us expand our business significantly.”