Mercedes Signs Agreement With Luminar For Lidar Sensors

Mercedes Signs Agreement With Luminar For Lidar Sensors

The deal comes as global automakers are rushing to launch safer self-driving vehicles

German luxury car manufacturer Mercedes-Benz has signed a new agreement with Luminar Technologies to develop and integrate its latest lidar product. This is a shift from a supply deal for its currently available sensors.

Lidar stands for light detection and ranging. It shoots light pulses that are reflected off objects to create a three-dimensional view of the world around a vehicle.

The contract is the first deal for Luminar's smaller, more efficient Halo lidar sensors. It comes as global automakers are rushing to launch safer self-driving vehicles.

Austin Russell, the CEO of Luminar, remarked, "Mercedes is on board. We're working with them at a global scale to develop and integrate the technology in their vehicles with the ultimate objective to get this into scale production."

While the global lidar market is small, it is growing as automakers expand autonomous and driver-assistance features.

Mercedes is working with several lidar partners, including French car parts supplier Valeo.

The company signed a supply deal for Luminar's Iris lidars over two years ago and planned to integrate them into vehicles mid-decade. However, the plan was shelved to develop the agreement for Halo, set to roll out in 2026.

Russell stated that Luminar will work on the development contract with Mercedes over the next couple of years.

Some Mercedes top-line models are equipped with Valeo lidar and can drive without constant human oversight in limited circumstances. Mercedes hopes to introduce advanced automated driving features in a broader range of vehicles.

Unlike robotaxis, which usually use four or more bulky lidar sensors that spin for a 360-degree view, high-end personal vehicles employ one or two smaller sensors that extend out from cars.

Luminar's Halo is smaller and more efficient than its previous generation Iris sensor and can blend into the roofline of a car or be placed behind the windshield.

The German auto giant has chosen Hesai, China's largest lidar maker, for global markets, despite legal and geopolitical risks. That’s because of its lower costs and ability to produce at scale. Hesai's latest ATX lidars cost around $200 each. The target price for the Halo is $500.

Generally, automakers work with two or more suppliers to reduce supply risk, especially during uncertainties such as the current Sino-US trade war.

Luminar has a facility in the US, but most of its lidars are manufactured outside the country. Its plants are in Mexico, Thailand, and China.

Russell said that if the tariff tussle remained unresolved, the company would consider making Halo in the US.