The battery, made by start-up Sila Nanotechnologies, uses silicon-based anodes and is 20-40% more energy dense than comparable cells currently available, Mercedes-Benz said.
Silicon - which Tesla said in 2020 it would build up the use of in its batteries - provides an alternative to the more commonly used graphite, 70% of which comes from China.
Mercedes-Benz is the first publicly announced automotive customer of California-based battery start-up Sila Nanotechnologies, which said in early May it was investing a figure in the low hundreds of millions of dollars in a new plant in Washington state due to open in 2024.
The premium carmaker has a minority equity stake in the unlisted Sila, which is also working with BMW.
Sila, founded by an ex-Tesla engineer, raised an additional $590 million last year, boosting its valuation to an estimated $3.3 billion.
(Reporting by Victoria Waldersee, Editing by Miranda Murray)