LG Energy Solution announced on October 8 a landmark contract to supply electric vehicle (EV) batteries to a subsidiary of Mercedes-Benz, expanding its reach in North America and other key regions. The contract, set to begin in 2028, will see LG Energy Solution deliver 50.5 gigawatt-hours (GWh) of batteries over a 10-year period, marking a significant step in the global electric mobility shift.
While the total contract value has not been disclosed, industry insiders estimate it to be worth several billion dollars, given the scale of the supply volume. The batteries in question are believed to be next-generation cylindrical cells, specifically the 46 series, which are expected to significantly outperform the current 2170 battery models. The 46 series batteries boast a fivefold increase in energy capacity, a sixfold boost in power output, and an enhanced driving range by 16%, making them a key asset for future EV performance.
These high-performance batteries are likely to be manufactured at LG Energy Solution’s new cylindrical battery plant in Arizona, which is currently under construction.
This facility, with a projected capacity of 36 GWh, is expected to be fully operational by 2026 and represents LG Energy Solution’s second independent plant in North America. The Arizona plant will play a crucial role in meeting the growing demand for cylindrical batteries from automakers, especially as EV adoption accelerates globally.
“We have signed a contract to supply electric vehicle batteries to a subsidiary of Mercedes-Benz,” LG Energy Solution confirmed in a public statement. The deal reflects the broader trends of rapid expansion in the EV sector, driven by environmental concerns, government mandates on emissions, and technological advancements in battery efficiency. As the EV market continues to evolve, large-scale battery supply agreements like this one are becoming increasingly important for automakers seeking to solidify their electric mobility strategies.
Source: Businesskorea
