UAE-based company signs Dh1 billion lithium deal with Mercedes-Benz

Abu Dhabi: A UAE-based company has signed a Dh1 billion lithium supply agreement with German carmaker Mercedes-Benz.

Khalifa Economic Zones Abu Dhabi (Kezad) – based Titan Lithium Industries said in a statement that it has entered a long-term supply framework agreement with Mercedes-Benz AG to provide battery-grade lithium for the automaker’s global electric vehicle programme. The multi-year deal is valued at more than $300 million (about Dh1.1 billion).

Under the agreement, Titan Lithium will become part of Mercedes-Benz’s global battery materials supply chain as the carmaker seeks long-term access to lithium, a key raw material for electric vehicle batteries.

Commercial deliveries are expected to begin in 2028, subject to standard conditions.

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.

Titan 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.

Meanwhile, KEZAD Group yesterday launched Metal Park, a new integrated industrial ecosystem aimed at downstream metals manufacturers looking to scale without heavy upfront capital investment.

The 450,000-square-metre facility introduces a pay-as-you-grow model, offering shared infrastructure, storage and logistics services, as Abu Dhabi steps up efforts to attract export-oriented manufacturing and strengthen non-oil industrial growth.