LG Energy Solution has signed a large-scale battery supply contract with Mercedes-Benz.
On the 3rd, LG Energy Solution announced that it signed a battery supply contract with Mercedes-Benz for a scale of 107 gigawatt hours (GWh). It plans to supply 75 GWh to its subsidiaries and 32 GWh to Mercedes-Benz AG.
The specific contract periods vary by region. The contract with the Mercedes subsidiary is from July 30, 2029, to December 31, 2037, in the United States, while the contract with Mercedes-Benz AG is from August 1, 2028, to December 31, 2035, in Europe.
Industry estimates suggest that the quantity in this contract is for the next-generation cylindrical battery, the 46 series. This is expected to be the largest supply contract for the 46 series that LG Energy Solution has signed to date, capable of producing about 1.5 million electric vehicles based on 70 kilowatt hours (kWh) per unit.
Although the contract amount has not been disclosed, considering that the unit price of the 46 series battery is estimated to be around $90 to $110 per kWh, it is projected that the total scale will reach approximately 15 trillion won.
With this contract, LG Energy Solution has solidified its position as a key supplier for Mercedes. Last October, LG Energy Solution also signed a battery supply contract for 50.5 GWh with Mercedes-Benz in North America and other regions. The quantity in that contract was also estimated to be for the 46 series battery.