LG Energy Solution Secures $1.4 Billion EV Battery Supply Deal with Mercedes-Benz – EQ
In Short : LG Energy Solution has signed a $1.4 billion long-term contract to supply EV batteries to Mercedes-Benz for its upcoming electric vehicle lineup in Europe and North America. The deal strengthens their ongoing partnership, supports Mercedes-Benz’s expanding EV roadmap, and reinforces LGES’s global position as a leading battery supplier amid rising global demand for diversified and reliable EV battery technologies.
In Detail : LG Energy Solution has finalized a landmark $1.4 billion agreement with Mercedes-Benz to supply electric vehicle batteries over a multi-year period. This contract marks a major milestone in the ongoing collaboration between the two companies, reflecting their shared commitment to accelerating global electric mobility. The supply deal is scheduled to run from 2028 to 2035, providing long-term support for Mercedes-Benz’s EV expansion strategy.
The agreement will supply battery cells and modules for Mercedes-Benz models targeting the European and North American markets. As these regions intensify their shift toward clean mobility, secure and high-quality battery partnerships have become critical. The deal ensures Mercedes-Benz has a reliable pipeline of advanced batteries to meet rising demand for both premium and mainstream electric vehicles.
This contract is the fourth major agreement between LG Energy Solution and Mercedes-Benz within two years, showcasing the strength and continuity of their partnership. The repeated engagements underline Mercedes-Benz’s confidence in LGES’s manufacturing capacity, technological capabilities, and long-term production reliability. Such trust is vital in an industry where battery quality directly influences vehicle performance, safety, and consumer experience.
For LG Energy Solution, this deal represents around eight percent of its previous year’s total revenue—highlighting its financial significance. It further strengthens the company’s global market position at a time when the battery industry is facing increasing competition from Chinese manufacturers. By securing long-term contracts with leading automakers, LGES continues to solidify its foothold in Western EV markets.
Mercedes-Benz is preparing for an expansive rollout of electric vehicles, with more than 40 new EV models planned globally by 2027. This large-scale electrification roadmap demands a stable supply of diverse battery technologies. The new LGES deal ensures Mercedes-Benz can continue scaling EV production without supply bottlenecks, particularly as the company ventures into more mass-market electric offerings.
LGES is known for offering a wide range of battery solutions—from high-performance cylindrical cells to mid-nickel pouch batteries and affordable LFP technologies. This technological versatility aligns with Mercedes-Benz’s need to support electric vehicles across different price tiers. The partnership enables Mercedes-Benz to fine-tune performance, range, and cost based on the target vehicle segment.
The deal also reflects broader shifts in the global EV supply chain, where automakers are increasingly partnering with non-Chinese suppliers to diversify their battery sourcing. As Europe and North America push for localized manufacturing, LGES’s global production network positions it as a crucial partner for long-term EV capacity expansion. This contract reinforces the strategic importance of Korea’s battery industry in global markets.
Beyond commercial value, the agreement signals confidence in EV demand growth through the next decade. By securing battery supply for 2028–2035, Mercedes-Benz is planning for sustained EV adoption and market acceleration. This long-term planning reflects strong expectations that cleaner mobility will dominate future automotive development, aided by supportive policies and rising consumer interest.
Overall, the $1.4 billion deal strengthens both companies’ positions in the rapidly evolving EV landscape. For Mercedes-Benz, it secures essential components for its expanding electric vehicle lineup. For LG Energy Solution, it enhances global competitiveness and deepens ties with a major premium automaker. The partnership underscores the growing maturity of the EV sector and the critical role of stable, high-quality battery supply chains.
