The contract involves supplying EV batteries to the German car maker Mercedes-Benz for the US and European Market.
LG Energy Solution finalises EV battery supply contracts with Mercedes-Benz, covering both the US and European markets. The agreements amount to 107 gigawatt-hours of battery cells and values at approximately $11 billion.
The Contract for European market, is from 2 September 2025 till 31 December 2035, accounts for 32 GWh of cylindrical 46-series cells. The US contract is scheduled to begin on 30 July 2029 and run through to 31 December 2037, covering an additional 75 GWh. Both the volume and duration of the contracts remain subject to change.
The agreements follow a previous October 2024 deal to supply 50.5 GWh of cells to another U.S. Mercedes-Benz entity.
For Mercedes-Benz, the long-term strategy in securing battery supply amid electrification, targets trade uncertainties, due to US tariffs on critical raw materials. For LG Energy Solution, they advance the company’s roadmap to become the leading battery supplier in North America by 2030 and reinforce its European market footprint.
LG Energy Solution also has existing battery contracts with other automakers. In October 2024, Ford committed to sourcing 109 GWh of batteries for commercial EVs in Europe, with plans to shift some production from Poland to Michigan. In November, Rivian announced a five-year supply deal for cylindrical cells for its R2 model, to be produced at LG’s upcoming $5.5 billion Arizona plant, which targets a 36 GWh annual output.
The company’s expansion in the US market is to acquire full ownership of the Ultium Cells Michigan facility from General Motors and in building two other battery plants in Arizona and Michigan. In Germany, Mercedes-Benz has opened a battery recycling plant aimed at recovering raw materials sufficient for 50,000 modules annually.
