South Korean battery manufacturer LG Energy Solution Ltd (LGES) announced in a regulatory filing that it has agreed to supply 107 gigawatt-hours (GWh) of batteries to Mercedes-Benz AG and an affiliated company over a period of ten years. This follows an earlier deal with the German automaker, in October 2024, for the supply of 50 GWh of batteries.
LGES said it has signed two separate contracts, estimated to be worth around KRW 15 trillion (US$ 10.7 billion) combined based on market prices of around US$ 100 per kWh, with the German automaker agreeing to buy 32 GWh of batteries between 2028 and 2035, while its unnamed affiliate has agreed to purchase 75 GWh between 2029 and 2037.
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The contracts are understood to be for LGES’ latest 46-series cylindrical battery cells, with the cited volumes enough to power up to 1.5 million mid-range battery electric vehicles (BEVs).
The company pointed out in the filing that “the contract prices have not yet been decided, ” and that the size of the contracts remains subject to change, depending on negotiations with clients.
Industry analysts noted that this deal is a major endorsement of South Korea’s advanced battery technologies, with LGES beating major Chinese rivals and that the company is expected to expand its global presence following the recent launch of its 46-series cylindrical nickel-manganese-cobalt (NMC) batteries.
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By GlobalData
