Report: LG Energy wins $11B battery contract with Mercedes-Benz
The Korean battery giant will supply 32 gigawatt-hour batteries to Mercedes-Benz by the end of 2035. LG Energy also signed another contract with a Mercedes-Benz affiliate to sell 75 gigawatt hours of batteries in total by the end of 2037.
South Korea’s LG Energy Solution has won an order to supply electric vehicle batteries to German automaker Mercedes-Benz, according to a report by Reuters. According to The Korean Economic Daily and The Korea Herald, the total deal is estimated to be worth 15 trillion won (about USD 10.8 billion).
The Korean battery giant will supply 32 gigawatt-hour batteries to Mercedes-Benz by the end of 2035, the South Korean company said in a company filing.
In a separate filing, LG Energy Solution said it had signed another contract with a Mercedes-Benz affiliate to sell 75 gigawatt hours of batteries in total by the end of 2037, the Reuters report said.
Sources told The Korea Herald that the two contracts for the 46-series cylindrical EV batteries are enough to power roughly 1.5 million Mercedes-Benz EVs.
Compared to the conventional 2170 model, LG Energy Solution’s 46-series battery cell is said to deliver five times greater energy and power output and also has greater space efficiency. Besides, it streamlines the manufacturing process by reducing the number of steps required per unit of energy, The Korea Herald report said.
LG Energy Solution declined to confirm specific details, saying: “We are unable to disclose any additional information beyond the announced details, as further specifics remain subject to ongoing discussions with our client.”
