LG Energy Solution has secured a substantial contract to provide electric vehicle batteries to a Mercedes-Benz subsidiary, marking a significant development in the automotive industry’s shift towards electrification.
The South Korean battery maker will supply 50.5GWh of EV batteries over a 10-year period beginning in 2028. While the exact value of the deal remains undisclosed, industry experts estimate it to be in the multi-billion dollar range.
Sources suggest the order is for LG’s next-generation 46 series cylindrical batteries, which boast impressive improvements over current 2170 cells. These advanced batteries are expected to offer five times the energy capacity, six times the power output, and a 16% increase in driving range.
Production is likely to take place at LG Energy Solution’s new Arizona plant, set to be operational by 2026 with a 36GWh capacity. This facility represents the company’s second independent North American production site, reflecting the growing demand for EV batteries in the region.
The deal underscores the accelerating global transition to electric vehicles, driven by environmental concerns and stricter emissions regulations. As automakers race to electrify their fleets, partnerships between battery manufacturers and car companies are becoming increasingly crucial.
