South Korean battery maker LG Energy Solution has signed a 2.06 trillion won battery supply deal with Mercedes-Benz. The agreement, starting in March 2028 and running through June 2035, will supply batteries to North American and European markets, accounting for 8% of the company's 25.6 trillion won sales in 2024.
LG Energy Solution Ltd. announced on December 8 that it has signed a battery supply agreement worth 2.06 trillion won (US$1.39 billion) with Mercedes-Benz AG, as disclosed in a regulatory filing. The supply will commence in March 2028 and extend through June 2035, targeting markets in North America and Europe. This volume represents 8 percent of the company's annual sales of 25.6 trillion won in 2024.
"The contract volume, duration and other terms are subject to change under an agreement with the client," LG Energy Solution stated. Industry watchers suggest the deal likely involves batteries for medium-range and budget electric vehicles (EVs).
Earlier this year, Mercedes-Benz revealed plans to launch 40 new models, from entry-level to premium segments, in the global market by 2027. In September, LG Energy Solution signed two supply deals with Mercedes-Benz totaling 107 gigawatt-hours, predicted to include next-generation 46-series cylindrical batteries for high-end models.
This agreement bolsters LG Energy Solution's supply chain stability amid the expanding EV market.