LG to Deliver 107 Gigawatt-hours of Batteries for Mercedes-Benz Electric Vehicles

LG Energy Solution has signed additional battery supply contracts with Mercedes-Benz, according to a report from kedglobal.com. These new agreements, which are in addition to a contract signed in October of 2024, are expected to generate revenue of approximately 10.8 billion US dollars or 9.3 billion euros.

The new contracts cover a total of 107 gigawatt-hours of battery capacity for both the European market and the United States. The European contract will commence in August 2028 and end in 2035, while the US contract will start in July 2029 and end in 2037. The batteries are likely to be cylindrical 46-format cells, produced from the LG Energy Solution plant under construction in Arizona.

The new contracts further strengthen the partnership between LG Energy Solution and Mercedes-Benz in the production and supply of batteries. The previous contract, with a delivery schedule between 2028 and 2038, covered a volume of 50.5 gigawatt-hours for a Mercedes-Benz subsidiary in various regions, including North America.

In another development, Hyundai has signed an additional contract with LG Energy Solution in 2025 for the delivery of 107 gigawatt-hours of battery cells, following a previous agreement in October 2024 for 50.5 gigawatt-hours.

The estimated order volume for these new contracts is approximately 16.6 billion US dollars or 14.4 billion euros. Another contract covers the delivery of 75 gigawatt-hours for the German car manufacturer in the United States, valid from July 2029 to the end of 2037.

These new contracts are significant as they underscore LG Energy Solution's commitment to supporting the growing demand for electric vehicles and its strategic partnerships with major automakers. The batteries produced under these contracts are expected to play a crucial role in powering Mercedes-Benz's electric vehicles in the coming years.

LG to Deliver 107 Gigawatt-hours of Batteries for Mercedes-Benz Electric Vehicles