LG Energy Solution to Supply LFP Batteries to Mercedes-Benz

LG Energy Solution has officially announced for the first time that it will supply lithium iron phosphate (LFP) batteries to Mercedes-Benz.

Exterior view of LG Energy Solution Michigan Holland Plant. LG Energy Solution

According to LG Energy Solution on April 20, Mercedes-Benz stated during a meeting to discuss expanding collaboration with its Korean partners that it has selected LG Energy Solution as a supplier of LFP batteries for vehicles.

This announcement marks the first official confirmation that the battery supply contract disclosed by both companies in December last year is specifically for vehicle LFP batteries. It is also the first time a Korean battery manufacturer will supply LFP batteries to a German automaker.

LG Energy Solution is strengthening its position as a key partner in Mercedes-Benz's electrification strategy. Beginning with a 50.5GWh supply contract in October 2024, the two companies have signed a total of four contracts so far: 107GWh in September last year (75GWh in the United States and 32GWh in Europe), an LFP supply contract worth 2.06 trillion won in December last year, among others. Industry sources estimate that LG Energy Solution's cumulative supply volume exceeds 25 trillion won.

LG Energy Solution is said to have become a core supplier for Mercedes-Benz by building a product portfolio that spans from premium to mid- and low-priced segments, thanks to its LFP batteries and next-generation cylindrical "46 series" batteries.

Samsung SDI is also participating as a battery supplier for Mercedes-Benz. Although the specific contract size has not been disclosed, industry sources estimate it to be about 10 trillion won. As a result, the combined value of cumulative and new orders secured by the two companies from Mercedes-Benz is believed to exceed 30 trillion won.

Industry watchers note that this collaboration goes beyond simple supply, representing a strategic partnership that covers next-generation battery technologies and form factors. LG Energy Solution’s LFP and cylindrical batteries, along with Samsung SDI’s prismatic batteries, are now seen as key pillars of Mercedes-Benz’s electrification roadmap.

A representative from LG Energy Solution stated, "Our collaboration with Mercedes-Benz is the result of recognition for our product competitiveness and supply stability," adding, "We will continue to expand partnerships with global automakers based on next-generation battery technologies and a diverse product portfolio."

This content was produced with the assistance of AI translation services.