LG Energy Solution to supply batteries to Mercedes affiliate
LGES plans to supply Mercedes with its 1.8-inch cylindrical batteries, which will be produced at a new facility being built in Arizona, the company’s second standalone factory in North America.
LG Energy Solution (LGES) has secured a 10-year contract to supply EV batteries to a Mercedes-Benz affiliate in North America and other regions.
As per the agreement, LGES will provide 50.5 gigawatt-hours (GWh) of EV batteries from 2028 to 2038.
LGES plans to supply Mercedes with its 1.8-inch cylindrical batteries, which will be produced at a new facility being built in Arizona, the company’s second standalone factory in North America.
Once completed, the factory is expected to have an annual production capacity of 36 GWh, sufficient to supply hundreds of thousands of EVs each year. The unit is expected to be fully operational by 2026.
LG Energy Solution will also soon start mass production of a cylindrical battery plant in South Korea. The batteries at the facility in Ochang, North Chungcheong, will be supplied to Tesla.
LGES’s forecast this week showed a 40% drop in third-quarter operating profit to USD 332.27 million, still higher than analyst estimates.
Outlining its overall strategy going forward in a recent press release, LGES said, “Beyond premium batteries centered on high-nickel chemistry, the company will improve its competitiveness in affordable markets through its LFP, LMFP, and high-voltage mid-nickel products.”
In the software and service businesses space, LGES “will offer various services including battery leasing, rental, and recycling to establish a comprehensive Battery-as-a-Service (BaaS) ecosystem.”
