LG Energy Solution and Mercedes-Benz form a 25 trillion won ‘battery blood alliance’ From LFP to 46-series
CI of LG Energy Solution.
LG Energy Solution has confirmed a sweeping battery alliance with Mercedes-Benz, covering a range from mid-to-low-cost lithium iron phosphate (LFP) cells to next-generation 46-series (46mm-diameter) cylindrical batteries. With the total value reaching 25 trillion won (approximately $16.97 billion), the partnership is drawing attention as a cornerstone of LG Energy Solution’s push into the U.S. and European markets.
According to battery industry sources on April 28, LG Energy Solution concluded three battery supply contracts with Mercedes-Benz: a 50.5 GWh agreement in October 2024, a 75 GWh agreement in September 2025, and a 32 GWh agreement also in September 2025. The combined value of these three deals amounts to 23 trillion won. Added to that is an order worth 2.06 trillion won secured in December last year. In roughly two years, the total contract value between the two companies has grown to approximately 25 trillion won.
The first three contracts were explicitly identified as supply agreements for the 46-series, a next-generation cylindrical battery format. The battery type for the December contract, however, had not been publicly disclosed at the time. That deal has recently come to light as being for automotive-use LFP batteries, following a visit to South Korea by Mercedes-Benz Chairman Ola Källenius on April 20, during which he stated that “LG Energy Solution has been selected as an LFP battery supplier.”
The news that LG Energy Solution had secured its first LFP contract with a German automaker has only now become fully clear. Industry observers say this could mark a significant milestone, demonstrating that the company has been recognized on both price and quality in the LFP segment, a segment long dominated by Chinese firms such as CATL and BYD. An industry insider emphasized, “Following its existing strength in NCM ternary batteries, LG Energy Solution is now establishing itself as an ‘irreplaceable partner’ in LFP as well.”
The 46-series contracts, too, were won through fierce competition against Chinese rivals. Mercedes-Benz, struggling with the EV chasm (a temporary slowdown in demand) had been expanding cooperation with Chinese battery companies such as CATL and Farasis, which compete aggressively on price. Against that backdrop, LG Energy Solution succeeded in consecutively securing large-scale supply contracts by leveraging the technological superiority of its high-performance 46-series batteries.
The 46-series offers at least five times the energy density and output of the conventional 2170 format, and excels in space efficiency. It also boasts strong price competitiveness, as fewer processing steps are required per unit of energy, reducing both production time and cost. A key feature is the application of high-capacity nickel-cobalt-manganese-aluminum (NCMA) cathode material and a high-efficiency silicon anode, which further improves fast-charging performance.
The alliance between LG Energy Solution and Mercedes-Benz is expected to reinforce the company’s capacity to serve both the U.S. and European electric vehicle battery markets. The LFP batteries destined for Mercedes-Benz are expected to be produced at LG Energy Solution’s factory in Wroclaw, Poland — a facility that has already completed the construction of an LFP production line for electric vehicles. The plant will also manufacture the 39 GWh worth of automotive-use LFP batteries contracted with France’s Renault. Sample deliveries are currently underway, with mass production scheduled to begin within the year.
The three 46-series contracts with Mercedes-Benz will enter mass production at LG Energy Solution’s Arizona plant in the United States starting at the end of this year. This positions the Arizona facility as a forward base for supplying 46-series batteries to Mercedes-Benz and into the broader U.S. market. As of the end of last year, LG Energy Solution had secured a backlog of over 300 GWh in 46-series orders alone. The Wroclaw plant is also pursuing the “46 in EU Project” to expand its 46-series production capacity for the European market.
An LG Energy Solution spokesperson said, “Forming a large-scale partnership with Mercedes-Benz, an icon of European premium brands, is a testament to our product credibility,” adding, “We will continue to leverage our local supply chain, unparalleled quality competitiveness, and differentiated product portfolio to overcome the global EV demand slowdown and accelerate our growth.”
Michael Herh
댓글
0