Mercedes-Luminar Partnership: Lidar for Future Vehicles

Mercedes-Benz and Luminar Announce Strategic Partnership

Mercedes-Benz announced on Thursday its intention to incorporate Luminar’s lidar technology into its upcoming vehicle models. This collaboration extends beyond simple integration, encompassing data exchange and a minority investment by the automaker in Luminar.

Details of the Agreement

According to a regulatory document, Mercedes-Benz will obtain up to 1.5 million shares of Luminar. This acquisition will be facilitated through the provision of specific data and services. Following this announcement, Luminar’s stock experienced a significant increase, rising by over 17.7% in trading.

The agreement with Daimler North America Corporation centers on the development and implementation of Luminar’s technology within the next generation of Mercedes-Benz passenger vehicles. Further collaborative activities are also planned.

Data Sharing and Continuous Improvement

Daimler will provide Luminar with data collected from both development and production vehicles. This data will be utilized to refine and enhance Luminar’s lidar systems through ongoing product improvements and updates.

In return for this data access, Luminar has agreed to issue 1.5 million shares of its Class A common stock to Daimler.

Industry Impact and Future Integration

Austin Russell, founder and CEO of Luminar, described the partnership as a pivotal moment for the automotive industry. He believes it will showcase the transition of enhanced safety features and autonomous driving capabilities from theoretical concepts to practical reality for consumers.

Neither company has yet disclosed a specific timeline for when Luminar’s lidar technology will be integrated into Mercedes-Benz vehicles.

Existing Partnerships and Further Development

Luminar already maintains a partnership with Volvo Cars. This collaboration involves the integration of Luminar’s hardware, software, and a unique perception system as standard features in Volvo’s upcoming electric SUV.

Separately, another agreement is in place to advance Luminar’s Iris lidar technology, with plans for its inclusion in series production vehicles by Daimler. This work will generate non-recurring engineering service fees for Luminar.

Prior Investment in Autonomous Truck Technology

In October 2020, Daimler’s trucking division made an investment in Luminar as part of a broader initiative to develop autonomous trucks. These trucks are designed to navigate highways without requiring a human driver. The financial details of this initial investment were not disclosed.