LG Energy Solution Wins $1.4B Mercedes-Benz Contract for EV Batteries

LG Energy Solution has signed a new multiyear agreement with Mercedes-Benz Group AG, a deal worth about 2.06 trillion won ($1.4 billion).

The contract, revealed today, strengthens the companies’ growing partnership as global demand for electric vehicles continues to rise. The supply period runs from March 1, 2028, through June 30, 2035, covering battery deliveries to North America and Europe, though the final value and timeline may shift as discussions progress.

The agreement represents roughly eight percent of LG Energy Solution’s revenue last year, underscoring the scale of this commitment. Industry analysts say the latest order will likely support mid- to entry-tier EV models. This marks a shift after two years of deals centered on high-performance cylindrical 46-series batteries, pointing to Mercedes-Benz’s broader push into more affordable EV segments.

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Mercedes-Benz is accelerating that strategy. The company announced its electrification roadmap in September and plans to launch more than 40 new models by 2027. That expansion is raising demand for reliable, diversified battery options across luxury and entry lines, making LG Energy Solution a key supplier.

LG’s portfolio already spans high-voltage mid-nickel pouch cells, lithium iron phosphate units, and the premium cylindrical series. Its mix of global production sites and product variety has helped the company stay competitive as Chinese producers gain traction in Europe with lower-cost offerings.

Industry watchers say this latest cooperation could help South Korean battery makers regain momentum in key markets while deepening LG’s footprint worldwide. As the report noted, “Ahead of the largest agreement, Mercedes-Benz Chairman Ola Kallenius met LG Group affiliates in Seoul in mid-November to discuss future mobility cooperation. Kallenius said at the time that Mercedes-Benz and LG share a vision rooted in innovation, quality and sustainability, and that the companies are working together to set new standards in the global auto industry.”