LG Energy Solution Wins Landmark Mercedes Benz Battery Deal Worth Estimated $11 Billion
SEOUL, Sept. 3 (Korea Bizwire) — LG Energy Solution has secured one of its largest-ever contracts with Mercedes-Benz, cementing its position as a core supplier in the German automaker’s electric vehicle push.
The South Korean battery maker said Wednesday it signed two supply agreements totaling 107 gigawatt-hours (GWh). One covers 75 GWh of batteries for a Mercedes-Benz affiliate in the United States from mid-2029 through 2037, while the other provides 32 GWh for Mercedes-Benz AG in Europe from 2028 to 2035.
Although LG did not disclose the value, industry analysts estimate the deal at roughly 15 trillion won ($11 billion), based on prevailing prices for the company’s next-generation 46-series cylindrical cells. The capacity is enough to power about 1.5 million electric vehicles with 70-kWh packs.
The deal underscores LG’s growing dominance in advanced cylindrical batteries, a segment where it is competing fiercely with China’s CATL and Farasis. LG is expected to fulfill U.S. demand through a new dedicated plant under construction in Arizona, scheduled to begin mass production next year.
The company already struck a 50.5 GWh supply agreement with Mercedes-Benz in October 2024, also believed to involve the 46-series. With the latest deal, LG now has contracts totaling more than 150 GWh with the German luxury brand, securing its role as a lead supplier in both North America and Europe.
One industry executive, adding that the win over Chinese rivals highlights South Korea’s competitiveness in the global battery industry, said :
This contract demonstrates LG Energy Solution’s clear technological edge in 46-series cells,
Analysts expect the agreement to pave the way for further orders from European carmakers as demand for high-performance cylindrical cells accelerates.
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LG Energy Solution Wins Landmark Mercedes Benz Battery Deal Worth Estimated $11 Billion, source
