LG Energy Solution said on the 8th that it signed a contract to supply electric-vehicle batteries to Mercedes-Benz (hereafter Benz) worth 2.0601 trillion won.
This is equivalent to 8% of LG Energy Solution's sales last year (25.6196 trillion won). The supply regions are North America and Europe, and the contract period runs from Mar. 1, 2028, to June 30, 2035.
An LG Energy Solution official said, "Terms such as the contract value and period may change following discussions with the customer."
This follows additional announcements after a total of three large-scale battery supply contracts last year and this year. Earlier, LG Energy Solution signed a battery supply contract with Benz for 107 GWh (gigawatt-hours). The two contracts, which call for supplying a total of 75 GWh of EV batteries in the United States and a total of 32 GWh in Europe, amounted to about 15 trillion won.
In the battery industry, many see this battery supply deal as likely involving batteries to be installed in "mid- to low-priced EV models." In September, Mercedes-Benz announced a large-scale electrification strategy to launch more than 40 new models in the global market by 2027. Batteries are needed for a wide range of segments from premium models to entry-level models.
Last month, Benz Chairman Ola Källenius visited Korea for the first time in two years and met with chief executive officers (CEOs) of LG Group affiliates to discuss cooperation on future vehicles. At the time, Chairman Källenius said, "LG is almost unique in having technology that is both broad and deep."