LG Energy Solution (LGES) said it secured new orders exceeding 100 GWh for its 46-series cylindrical battery cells in the first quarter, increasing its total order backlog to more than 440 GWh, as industry reports indicate BMW is the likely customer.
The South Korean battery manufacturer did not disclose the buyer, in line with common supplier practices. However, LGES confirmed it began producing 4695 cylindrical cells at its Ochang facility late last year and plans to expand production in the United States. The company said it will begin manufacturing a broader range of 46-series cells, from 4680 to 46120 formats, at its Arizona plant by the end of this year.
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Industry observers note that the specifications of the cells align closely with those adopted by BMW for its next-generation Neue Klasse electric vehicle platform. The German automaker has standardized the use of 46-millimetre cylindrical cells, including the 4695 format used in models such as the iX3, i3, and i7. Larger variants, such as 46120 cells, are expected to support upcoming models like the iX5, which will be built in Spartanburg, South Carolina—potentially benefiting from proximity to LGES’s U.S. production base.
South Korean media outlets, including Chosun and MK, reported that the agreement could be valued at around 10 trillion won (approximately €5.8 billion) and span 10 years. If confirmed, the deal would mark LGES’s first supply of battery cells for BMW’s fully electric vehicles, although the automaker has previously sourced LG cells for hybrid models.
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LGES has already secured contracts for similar cylindrical cells with other global automakers, including Rivian and Chery, and is also linked to a potential agreement with Mercedes-Benz. Reports suggest a previously signed 50.5 GWh contract with Mercedes-Benz, scheduled from 2028, may also involve 46-millimetre cylindrical cells.
For BMW, the reported agreement may reflect adjustments in its battery sourcing strategy. The company had initially planned to rely on a new facility being developed by AESC in the United States, but construction delays prompted consideration of alternative supply options, including imports from China or partnerships with other suppliers. A deal with LGES would support the establishment of a localized U.S. battery supply chain.
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LGES disclosed the new orders alongside its first-quarter financial results, which showed revenue rising 1.2% to 6.555 trillion won, while posting an operating loss of 207.8 billion won.
“In the first quarter, shipment of pouch-type EV batteries declined due to inventory adjustments by a major North American customer. However, stable shipments of cylindrical EV batteries and active response to growing North American ESS demand through capacity expansion resulted in a slight quarter-on-quarter increase in the revenue,” LG Energy Solution said in a statement.