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LG Energy set to ink $7B battery supply deal with BMW

Published: 30 Apr. 2026, 18:21 Updated: 30 Apr. 2026, 18:37

MICHAEL LEE
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Visitors look around the LG Energy Solution booth at a battery industry exhibition held at Coex in Gangnam District, Seoul, on March 11. [YONHAP]

LG Energy Solution is set to secure a battery supply deal likely to be worth around 10 trillion won ($7.3 billion) with BMW, marking one of the largest orders in the auto sector, according to sources.

The company has passed the German automaker's quality and production audits and is now finalizing terms to supply its next-generation 46-series cylindrical batteries for BMW’s upcoming EV platform, industry insiders told the JoongAng Ilbo and other outlets.

The deal is expected to run for up to 10 years and is likely to serve as a long-term anchor for LG Energy’s order book.

The contract is tied to BMW’s push to transition to high-performance and mid- to large-sized EV models.

The agreement represents a major win for the Korean battery manufacturer at a time when global automakers are slowing investment and delaying projects amid weakening EV demand. Rival battery makers, including Samsung SDI and SK On, have faced delays in North American joint ventures and supply agreements, raising concerns about utilization rates and rising fixed costs across the industry.

Securing a major client the likes of BMW reinforces LG Energy's position in the global battery market and strengthens its long-term order pipeline. The company is also accelerating a shift in its product mix, expanding its lineup of cylindrical batteries alongside its existing pouch and prismatic formats.

The agreement would be fulfilled through LG Energy’s Arizona facility, which is set to begin operations later this year, with additional production under consideration in Poland to meet European demand.

LG Energy Solution's battery plant under construction in Arizona [LG ENERGY SOLUTION]

The deal could help offset the company’s recent lackluster performance.

LG Energy reported an operating loss of 207.8 billion won in the first quarter, swinging from a profit of 374.7 billion won a year earlier. Revenue fell 2.5 percent on year to 6.56 trillion won.

The company has attributed the downturn to slowing EV demand and policy uncertainty in the United States, which weighed on battery shipments.

Tax credits under the U.S. Inflation Reduction Act’s advanced manufacturing production credit program also dropped sharply, totaling 189.8 billion won in the first quarter, down from 457.7 billion won a year earlier.

Still, the company is betting on new orders and diversification to drive a rebound.

The company told shareholders during a conference call that it had secured more than 440 gigawatt-hours of backlog for its 46-series EV batteries as of the first quarter, an increase of over 100 gigawatt-hours from the end of last year.

The BMW deal — while not officially confirmed by the company — is likely to be part of that expansion. It would also mark the first time LG Energy supplies batteries for the brand's EVs.

The 46-series batteries, considered a next-generation format for EVs, offer higher energy density and output over the widely used 2170 cells while improving space efficiency, allowing for simpler battery pack designs and lower manufacturing costs.

LG Energy has already secured orders for its 46-series from global automakers such as Mercedes-Benz, Chery Automobile and Rivian.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM YOON-SEO, MICHAEL LEE [[email protected]]