Singapore, December 8th (Argus) - Korean battery manufacturer LG Energy Solution (LGES) has signed a multi-year, $1.4 billion battery supply agreement with German automaker Mercedes-Benz.
According to a regulatory filing on December 8th, under the agreement, LGES will supply electric vehicle batteries to Mercedes-Benz in Europe and North America from March 2028 to June 2035. No further details were disclosed.
Last September, LGES and Mercedes-Benz signed two 107GWh electric vehicle battery supply agreements, strengthening Mercedes-Benz's role as a key driver of LGES's future revenue sources.
LGES is increasingly focusing on the energy storage system (ESS) sector this year. Its Polish factory is the largest in the region, with a capacity of 86GWh per year, and has begun to retrofit part of its electric vehicle production lines to meet the growing demand for ESS. In June this year, LGES also began producing lithium iron phosphate batteries for ESS in the United States, becoming the first company among major Korean battery manufacturers to start producing lithium iron phosphate batteries.
