Mercedes-Benz secures lithium supply from UAE company
A UAE-based company has entered into a Dh1 billion lithium supply agreement with German automaker Mercedes-Benz.
Titan Lithium Industries, which operates from Khalifa Economic Zones Abu Dhabi (Kezad), announced in a statement that it has signed a long-term supply framework agreement with Mercedes-Benz AG, News.Az reports, citing Gulf News.
Under the deal, Titan Lithium will supply battery-grade lithium for the carmaker’s global electric vehicle programme. The multi-year agreement is valued at more than $300 million, equivalent to approximately Dh1.1 billion.
As part of the arrangement, Titan Lithium Industries will be integrated into Mercedes-Benz’s global battery materials supply chain. The partnership supports the automaker’s strategy to secure long-term access to lithium, a critical raw material used in the production of electric vehicle batteries.
The company said the facility uses clean energy sources and refining processes aligned with low-carbon manufacturing standards.
“This agreement reflects the UAE’s deliberate strategy to build globally competitive industrial value chains in critical sectors,” said Dr. Sultan Al Jaber, the Minister of Industry and Advanced Technology.
“By enabling advanced manufacturing partnerships between global manufactures and UAE-based producers, the UAE continues to position itself as a reliable, long-term partner and the corridor to the economy of the future,” he added.
The deal also reflects a broader shift in trade flows, with Abu Dhabi-based industrial firms supplying downstream products to European companies seeking to diversify their supply chains away from traditional sources.
“Lithium is the backbone of the new energy economy, and this partnership reflects the UAE’s emergence as a trusted, long-term contributor,” said Vaibhav Jain, Founder and Chairman of Titan Lithium Industries Ltd.
itan Lithium said production at its Abu Dhabi facility is expected to start in 2027, with capacity being developed in phases. Once operational, the refinery is expected to supply lithium materials to automakers and energy storage companies globally
By Nijat Babayev
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