South Korean battery manufacturer LG Energy Solution has reportedly finalized a long-term supply agreement with Mercedes-Benz. According to a regulatory filing cited by Reuters, LG Energy Solution will provide batteries totaling 50.5 GWh to a Mercedes-Benz subsidiary between 2028 and 2038, covering North America and other regions.
While specific details about the Mercedes-Benz subsidiary involved and the financial terms remain undisclosed, the agreement signifies a significant expansion in Mercedes-Benz’s electric vehicle strategy. Technical specifications such as cell format and chemistry have not been revealed.
Mercedes-Benz currently produces batteries in Europe through its joint venture, Automotive Cells Company (ACC). However, with two of the three planned ACC plants currently on hold, the automaker anticipates higher battery demand than its in-house production can meet, prompting the partnership with LG Energy Solution.
Recently, LG Energy Solution announced a new strategy titled “Empower Every Possibility,” aiming to diversify its business and reduce reliance on the automotive sector. Despite this shift, the company continues to secure significant deals within the EV industry. The strategy outlines goals to double revenue by 2028 compared to 2023, targeting 67.4 trillion won (approximately 45.7 billion euros).
While exploring sectors like aviation, maritime, and robotics, LG Energy Solution maintains a strong presence in the electric car market. In addition to Mercedes-Benz, its clientele includes major automakers such as General Motors, Tesla, and Hyundai, underscoring its pivotal role in the global EV supply chain.
Source: Reuters
