LG Energy to provide batteries for Mercedes cars under a USD 1.4 billion agreement

LG Energy Solution has signed a 2 trillion won (USD 1.4 billion) supply agreement with Mercedes-Benz Group AG to provide EV batteries between 2028 and 2035, according to a Pulse report cited by NDTV. The deal marks the fourth major contract between the companies in two years and will cover deliveries to North America and Europe. LG Energy Solution said the final value and duration could be adjusted following further negotiations.

The contract is equivalent to nearly 8% of LG Energy Solution’s 2023 revenue of 25.62 trillion won. Industry analysts expect the latest supply to focus on batteries for mid- to entry-level Mercedes EVs, signalling a broader product mix as the automaker expands its electrification strategy. Mercedes-Benz plans to launch more than 40 new models globally by 2027, driving demand for both premium and affordable battery solutions.

Previous deals between the two firms have centred on LG’s cylindrical 46-series cells used in high-performance vehicles. The new arrangement is seen as supporting Mercedes’ push to offer more competitively priced EVs.

LG Energy Solution currently supplies a wide range of batteries, from mid-nickel pouch and LFP units for mainstream models to cylindrical 46-series cells for luxury cars. Analysts say the expanded partnership could help South Korean battery makers regain ground in Europe and other markets where lower-cost Chinese suppliers have gained share while strengthening LG Energy Solution’s global footprint.