LG Energy Solution announced on December 8 that it has signed a supply agreement with Mercedes-Benz AG for electric vehicle batteries valued at 2.06 trillion won (approximately $1.4 billion). Under the contract, LG Energy Solution will deliver battery cells and modules to support Mercedes-Benz’s vehicle production in Europe and North America between March 1, 2028, and June 30, 2035. The company noted that specific terms—such as total volume and delivery schedules—may be adjusted through ongoing discussions with the automaker.
The recent contract builds on a long-standing partnership between the two companies. During a visit to South Korea on November 13, Mercedes-Benz Chair and CEO Ola Källenius met with leadership teams from LG Energy Solution and other LG Group affiliates—including LG Electronics, LG Display and LG Innotek—at the LG Twin Towers in Seoul. These discussions underscored both parties’ commitment to deepening their collaboration in electric vehicle battery development and supply.
Earlier, in September, LG Energy Solution finalized a separate 107-GWh battery supply deal covering Mercedes-Benz subsidiaries and the parent company. Under that arrangement, 75 GWh of capacity is allocated to Mercedes-Benz subsidiaries with deliveries slated from July 30, 2029, through December 31, 2037. The remaining 32 GWh will be supplied directly to Mercedes-Benz AG between August 1, 2028, and December 31, 2035. Together, these agreements position LG Energy Solution as a key battery supplier to Mercedes-Benz as the automaker expands its portfolio of electric vehicles.
Through partnerships like these, LG Energy Solution continues to strengthen its role in the global EV supply chain, while Mercedes-Benz secures critical battery capacity to support its ambitious electrification targets.
Source: Business Korea
