LG Energy Solution Secures Massive $1.4 Billion EV Battery Order from Mercedes-Benz
South Korean battery giant to power German automaker’s future electric vehicles in a multi-year agreement.
In a significant move underscoring the booming demand for electric vehicle components, LG Energy Solution (LGES) has landed a substantial $1.4 billion order from Mercedes-Benz. This seven-year supply deal, set to run from March 2028 through June 2035, will see LGES provide high-voltage batteries for Mercedes-Benz’s upcoming electric vehicles destined for both European and North American markets. While the contract value and terms are subject to potential adjustments, the agreement signals a robust and ongoing appetite for EV battery technology.
This latest deal marks the second major battery supply agreement between LGES and the German luxury automaker this year. Previously, in September, LGES announced it would supply batteries totaling 32 gigawatt-hours (GWh) to Mercedes-Benz by 2035, with an additional 75 GWh committed to a Mercedes-Benz affiliate by the end of 2037. These substantial orders come as Mercedes-Benz gears up for an aggressive expansion of its EV lineup.
Mercedes-Benz Accelerates EV Push with Ambitious Product Rollout
Mercedes-Benz is embarking on what it describes as the “biggest product launch program” in its history, aiming to introduce over a dozen new or refreshed electric models by the close of the decade. This strategic pivot sees the automaker moving away from earlier EV designs, such as the EQS and EQE, which garnered a mixed reception, towards a new generation of vehicles built on dedicated EV platforms. The upcoming CLA EV, slated for a first-quarter launch next year and built on the 800-volt Mercedes Modular Architecture (MMA), is a prime example of this renewed focus. Another anticipated model is the GLC with EQ Technology, expected by the end of next year, utilizing the 800-volt MB.EA platform.
LGES Powers Through Market Volatility with Key Partnerships
The significant order from Mercedes-Benz arrives amid a dynamic and sometimes uncertain global EV market, with concerns about potential sales slowdowns and evolving regulatory landscapes. Despite these challenges, LGES has experienced a highly successful year in securing major battery contracts. Beyond the Mercedes-Benz deals, the company inked a substantial $4.3 billion agreement with Tesla for lithium-iron phosphate batteries. Furthermore, LGES is collaborating with General Motors to develop advanced lithium manganese-rich (LMR) cells for the automaker’s forthcoming full-size trucks and SUVs, with production expected from 2028.
These extensive order books from leading automakers suggest a strong industry conviction that the future of personal transportation will be predominantly battery-powered, regardless of short-term market fluctuations.
