UAE‑Based Company Signs Dh1 Billion Lithium Deal with Mercedes‑Benz



In a strategic leap for the United Arab Emirates’ industrial and clean energy ambitions, a **UAE‑based firm has signed a milestone 1 billion dirham (around $300 million) lithium supply deal with German automaker Mercedes‑Benz. The long‑term agreement will see Titan Lithium Industries become a critical supplier of battery‑grade lithium — a vital raw material in electric vehicle (EV) batteries — supporting Mercedes‑Benz’s global electrification strategy.

This landmark pact not only underscores the rising importance of the UAE in the global EV materials market, but also reflects broader efforts by Abu Dhabi to diversify its economy and build advanced industrial value chains tied to sustainable mobility.

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Why the Deal Matters: Lithium at the Heart of EV Growth

Lithium is often called the backbone of the new energy economy — it’s a core component in lithium‑ion batteries, which power electric vehicles and large‑scale energy storage systems. Stable, long‑term access to high‑quality lithium is crucial for automakers like Mercedes‑Benz as they accelerate the transition from traditional combustion engines to all‑electric and hybrid fleets.

The agreement between Titan Lithium and Mercedes‑Benz establishes the UAE company within the German carmaker’s global supply chain for battery materials. That’s a major step for both parties: Mercedes‑Benz strengthens its access to a geographically diversified source of lithium, while the UAE advances its role in supplying critical materials for future‑focused industries.

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About the Partnership: Supply Timeline and Scope

The multi‑year deal is structured as a supply framework agreement, intended to secure consistent delivery of battery‑grade lithium materials over the coming years. Commercial shipments are expected to begin in 2028, pending standard conditions related to construction and product qualification.

Titan Lithium’s operations are based in Khalifa Economic Zones Abu Dhabi (KEZAD) — a rapidly growing industrial hub that serves as a focal point for advanced manufacturing, logistics, and clean energy supply chains. The company’s facility refines lithium into battery‑ready chemicals like lithium carbonate and lithium hydroxide using modern technologies and clean energy sources.

The phased ramp‑up in production capacity will not only serve Mercedes‑Benz but is also expected to supply materials to other automakers and energy storage clients globally, positioning Titan Lithium as a competitive supplier in the global battery ecosystem.

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Strategic Alignment with UAE Industrial Goals

This deal aligns closely with the UAE’s long‑term industrial strategy of building internationally competitive value chains in critical and future‑focused sectors. Government officials say the partnership demonstrates how UAE producers can anchor advanced manufacturing relationships with multinational corporations.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, noted that the agreement reflects the country’s deliberate “strategy to build globally competitive industrial value chains in critical sectors.” He described the collaboration as part of a broader vision to make the UAE a reliable long‑term partner and corridor to the economy of the future.

For its part, Titan Lithium has framed the collaboration with Mercedes‑Benz as a testament to the UAE’s emergence as a trusted, durable contributor to the global clean energy ecosystem. Vaibhav Jain, Founder and Chairman of Titan Lithium Industries, highlighted lithium’s growing importance — not just economically, but as a strategic ingredient in the global energy transition.

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What This Means for the Global EV Supply Chain

The automotive industry has been aggressively securing long‑term supply contracts for battery materials as electric vehicle demand surges. Price volatility and supply bottlenecks in lithium and other battery elements like nickel and cobalt have challenged automakers, prompting a rush toward diversified supply sources and strategic partnerships.

Mercedes‑Benz’s deal with a UAE producer reflects this trend: instead of relying heavily on traditional mining hubs or supply concentrated in a few regions, the German brand is broadening its sources to include refined materials from the Middle East. This reduces exposure to supply disruptions and enhances resilience in its battery production networks.

For the UAE, the partnership represents a shift toward serving higher value‑added segments of global supply chains — moving beyond commodity exports into downstream manufacturing of strategic materials that feed advanced industries like EV manufacturing.

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Economic and Industrial Impact

Beyond the direct benefits to Titan Lithium and Mercedes‑Benz, the deal strengthens the economic ecosystem within Khalifa Economic Zones and beyond:

Industrial diversification: It supports the UAE’s broader push to diversify its economy away from fossil fuel dependence into advanced manufacturing and clean technologies.

Job creation and skills development: As Titan Lithium scales its facility and workforce, new employment opportunities and technical expertise are likely to grow in the region.

Sustainable production practices: The use of clean energy sources and environmentally aligned refining methods reflects a focus on low‑carbon industrial processes — a priority for both the UAE and global OEMs (original equipment manufacturers).

Additionally, this partnership signals to other global manufacturers that the Middle East can offer reliable access to critical materials, potentially attracting further investment and collaboration in related sectors.

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Challenges and Future Outlook

While the Dh1 billion deal is a major milestone, its successful execution hinges on several factors:

Timely development of production capacity: Titan Lithium must complete its refinery and ensure product quality meets Mercedes‑Benz specifications by the targeted 2028 start date.

Market dynamics of lithium pricing: Global lithium markets have been volatile, and both parties must navigate price fluctuations and supply‑demand shifts over the coming years.

Competition from other suppliers: As automakers diversify their sources, competition for long‑term contracts and high‑grade lithium remains fierce.

Despite these challenges, this agreement places the UAE firmly on the map as a strategic contributor to the global electric mobility supply chain — a role expected to become even more significant as global EV adoption accelerates.

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Conclusion: A Strategic Win for the UAE and EV Industry

The Dh1 billion lithium deal between Titan Lithium Industries and Mercedes‑Benz is more than just a commercial contract; it reflects the UAE’s evolution into a global hub for critical EV materials and highlights the strategic reorientation of global supply networks toward sustainability and resilience. As electric vehicles continue to reshape the automotive industry, partnerships like this could become models for how nations and corporations collaborate to meet the demands of the future.

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If you’d like, I can include a timeline of how lithium supply chains are reshaping EV manufacturing globally or provide a brief explainer on lithium’s role in battery chemistry.