Mercedes & LGES said to have finalised major battery deal
As Reuters writes, citing a regulatory filing, LG Energy Solution is to supply batteries for electric vehicles to a subsidiary of Mercedes-Benz between 2028 and 2038. The news agency says the deal involves North America and ‘other regions’.
The information is still relatively vague, and the Reuters report does not detail which Mercedes subsidiary is acting as the client or name the financial scope of the deal. Technical details such as the cell format or chemistry have not been revealed.
Although Mercedes manufactures batteries with its own company, ACC, in Europe, the company is likely to have much higher demand than the output planned at ACC, while two out of three ACC plants are currently on hold.
LG Energy Solution very recently announced its intention to diversify its business more strongly in the future and reduce its overall dependence on the automotive sector. In a new strategy called ‘Empower Every Possibility, ’ LG Energy Solution has combined financial and strategic goals with the aim of doubling turnover in 2028 compared to 2023. This would correspond to 67.4 trillion won or 45.7 billion euros.
While the South Korean battery is aiming to increase its focus on aviation, maritime and robotics sectors, as the deal with Mercedes also illustrates, electric cars remain a core element of the company’s business. Other electric car customers include General Motors, Telsa, and Hyundai.
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