LG Energy Solution lands major battery deal with Mercedes-Benz

LG Energy Solutions Michigan plant in Holland Michigan Courtesy of LG Energy Solution — LG Energy Solution's Michigan plant in Holland, Michigan/ Courtesy of LG Energy Solution

SEOUL, September 03 (AJP) - LG Energy Solution said Wednesday that it had signed a major supply agreement with Mercedes-Benz to provide electric vehicle batteries for the German automaker’s European and U.S. operations.

The deal, disclosed in a regulatory filing, covers two contracts. In Europe, LG Energy Solution will deliver 32 gigawatt-hours of batteries from August 2028 through late 2035. In the United States, it will supply 75 gigawatt-hours beginning in July 2029 and continuing through the end of 2037.

Though financial terms were not revealed, industry analysts estimated the contracts’ value at roughly 15 trillion won, or $10.8 billion, based on their scale.

The agreement is the second between the two companies. In October 2024, Mercedes signed a deal with LG Energy Solution for 50.5 gigawatt-hours of batteries.

Under the new contract, the South Korean firm is expected to provide Mercedes with its 46-series cylindrical cells, a format gaining traction in the industry for its energy efficiency.

Analysts said the agreement underscores LG Energy Solution’s ability to compete against Chinese rivals such as CATL and Farasis, which have been expanding aggressively with lower-cost offerings.

Lim Jaeho ajupresswogh@ajupress.com