SEOUL, Dec. 8 (Yonhap) — South Korean battery maker LG Energy Solution Ltd. said Monday it has signed a battery supply deal worth 2.06 trillion won (US$1.39 billion) with Mercedes-Benz AG.
The supply, which will begin in March 2028, will run through June 2035, LG Energy Solution said in a regulatory filing.
The volume accounts for 8 percent of the company’s annual sales of 25.6 trillion won in 2024.
The batteries will be supplied to North American and European markets, the company said.
“The contract volume, duration and other terms are subject to change under an agreement with the client,” LG Energy Solution said.
Industry watchers said LG Energy Solution will likely supply batteries for medium-range and budget electric vehicles (EVs) under the agreement.
Earlier this year, Mercedes-Benz unveiled plans to release 40 new models, spanning entry-level vehicles to those in premium segments, in the global market by 2027.
In September, LG Energy Solution said it has signed two supply deals with Mercedes-Benz with a combined volume of 107 gigawatt-hours without offering further details. Industry watchers have predicted the products will include next-generation 46-series cylindrical batteries designed for high-end models.
This undated file photo provided by LG Energy Solution Ltd. shows its logo. (PHOTO NOT FOR SALE) (Yonhap)
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