Key Takeaways
1. Mercedes-Benz and LG Energy Solution have signed a significant battery supply agreement valued at 107 GWh, with 32 GWh for Europe and 75 GWh for the US.
2. The batteries will be cylindrical cells from the “46 series,” with production starting at a new plant in Arizona in 2026.
3. This new agreement adds to a previous contract for 50.5 GWh, bringing the total to over 150 GWh, indicating the direction of future Mercedes electric vehicle models.
4. The choice of the 46 round cell aligns with the MB.EA-L platform, which is designed for module-less battery integration.
5. The deal highlights Mercedes-Benz’s commitment to high technology and quality, outpacing competitors like CATL and Farasis, and is estimated to be worth around $10.8 billion.
According to Electrive, Mercedes-Benz has come together with LG Energy Solution to form a significant battery supply agreement, which is valued at 107 GWh in total. Out of this, 32 GWh is designated for Europe, with delivery scheduled from August 2028 to December 2035, and 75 GWh is allocated for the US between July 2029 and December 2037.
Battery Specifications
The batteries involved are cylindrical cells from the “46 series,” measuring about 46 millimeters in diameter. Electrive reports that this is “the largest single order to date for LG Energy for its cylindrical cells from the 46 series.” Production of these battery cells is set to increase at a new plant in Arizona, along with additional sites, starting in 2026.
Previous Agreements
Previously, a supply contract for 50.5 GWh was also established with LGES in October 2024, likely for the same type of cells, beginning in 2028. In total, the contracts will sum up to over 150 GWh of cylindrical battery cells, which hints at the direction that future Mercedes electric vehicle models will take.
Strategic Decisions
Electrive suggests that the choice of the 46 round cell may be tied to the upcoming MB.EA-L platform, which lacks a modular battery level (“module-less battery”) making it a good fit for incorporating round cells.
In the contest for this contract, LGES outperformed well-known Chinese competitors like CATL and Farasis, showcasing Mercedes’ commitment to high technology and quality standards. The deal’s importance is further underscored by its estimated worth, with totals reaching around 15 trillion won, which is about $10.8 billion.
Future Implications
With the agreement with LG, Mercedes-Benz is establishing a vital base for its future S-Class EQ and other large electric vehicle models that will utilize the MB.EA-L platform. The emphasis on the 46 round cell and the early acquisition of extensive battery volumes will aid in long-term production and delivery strategies.
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