[Alpha Biz= Paul Lee] LG Energy Solution has formed a comprehensive battery partnership with Mercedes-Benz, covering both mid-range lithium iron phosphate (LFP) batteries and next-generation 46-series cylindrical batteries, with total deal value reaching approximately KRW 25 trillion.

According to industry sources on the 28th, LG Energy Solution signed multiple supply contracts with Mercedes-Benz, including 50.5GWh in October 2024, 75GWh and 32GWh in September 2025—amounting to about KRW 23 trillion. An additional KRW 2.06 trillion order secured in December last year brings the combined total to around KRW 25 trillion within roughly two years.

While the earlier three contracts were confirmed to involve 46-series batteries, the December deal was recently revealed to be for automotive LFP batteries, marking LG Energy Solution’s first LFP supply agreement with a German automaker. The disclosure came after CEO Ola Källenius confirmed the partnership during his visit to Korea.

The deal is seen as a major milestone for LG Energy Solution, signaling its competitiveness in the LFP segment—traditionally dominated by Chinese players such as CATL and BYD—in both price and quality.

The 46-series contracts also reflect a competitive win against Chinese rivals, as Mercedes-Benz has been expanding partnerships with cost-competitive suppliers like CATL and Farasis amid the EV market slowdown. LG Energy Solution secured the deals by leveraging its advanced technology in high-performance cylindrical batteries.

The 46-series batteries offer at least five times higher energy and output compared to conventional 2170 cells, along with improved space efficiency and cost competitiveness due to streamlined manufacturing processes. They also feature high-nickel NCMA cathodes and silicon-based anodes, enhancing fast-charging performance.

The partnership is expected to strengthen LG Energy Solution’s foothold in the U.S. and European EV battery markets. LFP batteries for Mercedes-Benz are likely to be produced at the company’s Wrocław plant in Poland, which already has LFP production lines. Meanwhile, mass production of 46-series batteries for Mercedes-Benz is set to begin later this year at LG’s Arizona facility.

With more than 300GWh of backlog secured for 46-series batteries as of end-2025, LG Energy Solution is positioning the partnership as a key pillar for its global expansion strategy.

 

 

 

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