South Korean Battery Stocks Rally on Mercedes-Benz Partnership

Shares of South Korea’s top battery makers jumped Tuesday after clinching deals with Mercedes-Benz Group AG, providing a welcome boost to a sector that has been hit by the slowing global transition to electric vehicles.

Samsung SDI Co. led the gains, surging as much as 19% to the highest level since August 2023 following the announcement of its first supply contract with the German luxury automaker. Under the multi-year agreement, Samsung SDI will supply high-nickel nickel-cobalt-manganese batteries for Mercedes’s next-generation compact and midsize electric SUVs and coupes.