Posted on 10 Dec 2025
South Korean battery manufacturer LG Energy Solution says it has inked a long-term supply contract worth KRW 2.06 trillion ($1.4 billion) with Mercedes-Benz, Kallanish reports.
The German carmaker placed the order on 5 December, although details on volume and delivery timelines are yet to be disclosed. The supply deal will cover European and North American operations, from 01 March 2028 until 30 June 2035, according to LGES’ announcement.
This is the fourth deal between the companies, following a contract signed last October and two additional agreements announced in September. Mercedes-Benz is estimated to have contracted $16 billion worth of batteries, with the latest contract likely to involve lithium iron phosphate (LFP) cells.
Following the announcement, LGES’ stock in South Korea closed 6% higher on Monday.
While LGES is working to diversify both its customers and battery factors and chemistries, Mercedes-Benz is reportedly moving to expand its mass-market EV offerings. LGES said in October it will prioritise nickel cobalt manganese aluminium (NCMA) pouch batteries and 46-series cylindrical batteries for performance EVs.
For the standard segment, it will deliver high-voltage mid-nickel NCM batteries and start production of LFP pouch-type batteries for the affordable segment this year. It’s also developing lithium metal-rich prismatic cells for mid-to-low EV models.
On Sunday, Mercedes-Benz said it’s now taking orders in Germany for two models of the new GLB all-electric company SUV, expected to be marketed in the spring of 2026. The BEV offers a range of up to 631 kilometres (WLTP), with an 85-kilowatt-hour lithium-ion battery (usable capacity).
The GLB 250+ starts at €59,048 ($68,815) and the GLB 350 4MATIC starts at €62,178 in Germany. The company is also offering leasing options at €305/month for private customers.
“The model range will soon be expanded to include additional battery electric variants, including an entry-level model as well as high-tech hybrids,” the carmaker said Sunday, without indicating if these would deploy LFP batteries.
Mercedes-Benz plans to cut production costs by 10% by 2027.
Source:Kallanish
