Mercedes purchases 107 GWh of batteries from LG Energy Solution

Mercedes-Benz and LG Energy Solution have secured another major battery deal. The batteries are to be supplied partly in the USA and partly in Europe. Although not officially confirmed, it is likely that these will be large cylindrical cells from the 46 series.

In an official document, LG Energy Solution (LGES) outlines the deal with Mercedes-Benz in broad terms. According to the document, the contract is divided into two parts: On the one hand, 75 GWh of batteries are to be delivered in the United States between July 2029 and December 2037. On the other hand, 32 GWh are to go to Mercedes-Benz in Europe between August 2028 and December 2035. LGES does not provide any information on the order value of the total 107 GWh of batteries.

However, Korean media reports suggest that the value is likely to be around 15 trillion won, equivalent to around 9.3 billion euros. They base this estimate on the current prices for the cylindrical batteries in the next ‘46 series’. LGES is currently ramping up production of these cylindrical cells, which have a diameter of 46 millimetres. The company already manufactures cells of this format in South Korea. A corresponding plant is scheduled to go into operation in the US state of Arizona in 2026. Tesla and Rivian are considered to be customers there.

Mercedes-Benz is also flirting with cylindrical battery cells. These are installed, for example, in the recently unveiled Concept AMG GT XX, with which Mercedes-Benz recently provided a glimpse of a production sports car. The concept car is based on Mercedes’ new AMG.EA platform. In contrast, prismatic cells have been announced for the Mercedes MMA (for the CLA) and MB.EA-M (for the GLC and the upcoming C-Class) platforms for the time being. According to previous announcements, the MB.EA-L platform variant for larger vehicles will not require a module level in its batteries, so that the installation of cylindrical cells would theoretically be conceivable there.

The Korea Economic Daily reports that the batteries now agreed upon for delivery to Mercedes-Benz will also be manufactured at the new LGES plant for 46-series cylindrical cells in Arizona. If the cell format is confirmed, it would be ” LG Energy’s single largest order to date for its cylindrical 46 series cells,” the report continues.

The bond between the two sides is growing stronger. In October 2024, LG Energy Solution signed a contract with Mercedes-Benz for 50.5 GWh. At the time, few details were disclosed. However, South Korean media reported that the contract was for 46-cell cylindrical cells, which are to be delivered from 2028 onwards. If all the details are confirmed, the total volume of contracts between the two sides would amount to over 150 GWh of large cylindrical battery cells.

According to further information from Korean media portals, the order was only awarded “after intense competition with Chinese battery firms CATL and Farasis.” Like LGES, both companies are already regular battery suppliers to the Stuttgart-based company. Although Mercedes itself has a stake in a battery manufacturer, namely ACC, its demand is many times higher than ACC’s planned output. This is especially true given that plans for two of ACC’s three plants are currently on hold.

chosun.com, kedglobal.com, reuters.com

This article was first published by Cora Werwitzke for electrive’s German edition.