LG Energy wins estimated $11B battery contract with Mercedes-Benz

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LG Energy wins estimated $11B battery contract with Mercedes-Benz

Published: 03 Sep. 2025, 10:12 Updated: 03 Sep. 2025, 14:52

Audio report: written by reporters, read by AI

LG Energy Solution’s manufacturing plant in Michigan, United States. [LG ENERGY SOLUTION]

Korean battery maker LG Energy Solution has inked two supply deals with Mercedes-Benz with a combined volume of 107 gigawatt-hours (GWh), following a previous supply contract signed with the German automaker last October.

The company said in a regulatory filing that it will provide 32 GWh of batteries to Mercedes-Benz and 75 GWh to the carmaker's affiliate, without providing further details.

Market watchers estimated the combined deal to be worth around 15 trillion won ($10.7 billion).

The contract with Mercedes-Benz will run from 2028 to 2035, while the deal with its affiliate will run from 2029 to 2037.

"The contract price has not been decided yet," the company said in the filing, noting that the supply volume and other details are subject to change depending on negotiations with clients.

LG Energy Solution is widely expected to supply its next-generation 46-series cylindrical batteries to the European carmaker.

The combined volume of the supply deals is enough to produce 1.5 million units of 70 kilowatt-hour (kWh) electric vehicles. The market price for 46-series cylindrical batteries is estimated at around $90 to $110 per kWh.

"The latest deal is significant as LG Energy Solution secured major contracts from Mercedes-Benz, beating Chinese rivals and proving South Korea's advanced battery technologies," an industry watcher said.

"LG Energy Solution is set to expand its presence in the global market based on its competitive edge with the 46-series," the official added.

BY PARK EUN-JEE, YONHAP [[email protected]]