LG energy Solution Lands Major Battery Supply Deal with Mercedes-Benz, Powering 1.5 Million EVs
SEOUL, SOUTH KOREA - LG Energy Solution has secured a significant contract to supply next-generation cylindrical batteries to Mercedes-Benz affiliates and Mercedes-Benz AG, perhaps worth around 15 trillion won (approximately $11.3 billion USD). the agreement will provide enough battery capacity to power an estimated 1.5 million electric vehicles.
The deal, announced today, builds on a previous supply agreement signed in October of last year, bringing LG Energy Solution’s total committed battery capacity to Mercedes-Benz to 150GWh. This latest contract underscores the growing demand for high-performance batteries and solidifies LG Energy Solution’s position as a key player in the global EV supply chain. The batteries are expected to be the 46-series – a large cylindrical cell measuring 46mm in diameter and 80-120mm in height – and will be crucial for Mercedes-Benz’s enterprising electrification plans.
The supply contracts span multiple years: with Mercedes-Benz affiliates from July 30, 2029, to December 31, 2037, and with Mercedes-Benz AG from August 1, 2028, to December 31, 2035. LG Energy solution stated that the exact contract value remains unconfirmed, but industry analysts estimate the deal’s worth based on current battery pricing.
Industry estimates place the price of 46-series batteries at $90-$110 per kilowatt-hour (kWh). Based on a 70 kWh battery pack, the contract is projected to be valued around 15 trillion won. LG Energy Solution plans to fulfill a portion of the US demand from its 36GWh cylindrical battery production plant currently under construction in Arizona.
This win for LG Energy Solution comes after intense competition with Chinese battery manufacturers like CATL and Parasis, demonstrating the company’s competitive edge in both technology and localized production capabilities. “LG Energy Solution has proved the advanced technology of the Korean battery industry by successfully winning orders,” noted an industry official. The contract is viewed as a confirmation of LG Energy Solution’s differentiated US manufacturing and its advancements in 46-series battery technology.