Rendering of LG Energy Solution’s Arizona plant in the United States. (Photo provided by LG Energy Solution)
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.
“This contract demonstrates LG Energy Solution’s clear technological edge in 46-series cells,” said one industry executive, adding that the win over Chinese rivals highlights South Korea’s competitiveness in the global battery industry.
Analysts expect the agreement to pave the way for further orders from European carmakers as demand for high-performance cylindrical cells accelerates.
Ashley Song (ashley@koreabizwire.com)
