LG Energy Solution wins $1.4B Mercedes-Benz EV battery deal through 2035. Strategic partnership strengthens global electric mobility push. The electric vehicle battery war just intensified. South Korea’s LG Energy Solution has secured a massive contract worth 2.06 trillion won (approximately $1.4 billion) to supply EV batteries to German luxury automaker Mercedes-Benz AG, marking another milestone in the global race toward electric mobility.
The seven-year agreement, running from March 2028 through June 2035, will see Lucky Goldstar Energy Solution delivering advanced battery technology to Mercedes-Benz facilities across Europe and North America. This strategic partnership reinforces the deepening collaboration between traditional automotive giants and cutting-edge battery manufacturers as the world accelerates its transition to zero-emission vehicles.
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A Growing Partnership Built on Innovation
This isn’t LG Energy Solution’s first rodeo with Mercedes-Benz. The two companies have cultivated a robust partnership in the EV battery sector. Just three months earlier in September, they inked another substantial deal totaling 107 GWh—75 GWh designated for Mercedes-Benz subsidiaries and 32 GWh for Mercedes-Benz AG directly.
The relationship extends beyond boardrooms and contracts. When Mercedes-Benz CEO Ola Kallenius visited South Korea in November, he met with top executives from LG Group’s key affiliates, including LG Energy Solution, LG Electronics, LG Display, and LG Innotek at the iconic LG Twin Towers in Seoul’s Yeouido district. Such high-level engagement signals the strategic importance both companies place on electric mobility.
Why This Matters for India’s EV Revolution
While this deal focuses on European and North American markets, its implications ripple across the global automotive landscape—including India’s rapidly expanding EV ecosystem. As luxury brands like Mercedes-Benz commit billions to electrification, Indian consumers can expect more affordable, technologically advanced electric SUVs entering the market through economies of scale.
Indian automakers are already benefiting from similar partnerships. Mahindra’s ambitious INGLO platform demonstrates how domestic manufacturers are leveraging advanced battery technology to compete globally, while maintaining the 5% GST rate on EVs keeps electric vehicles financially attractive for Indian buyers.
The Flexibility Factor
LG Energy Solution has smartly included a flexibility clause in the contract, noting that “conditions such as contract value and duration may vary depending on future consultations with the customer.” This pragmatic approach acknowledges the rapidly evolving EV landscape where battery technology, manufacturing capacity, and market demands can shift dramatically within months rather than years.
As electric vehicles become mainstream rather than novelty, partnerships like this between battery pioneers and automotive legends will define who dominates the next chapter of transportation.
