LG Energy Solution Secures $1.4B Mercedes-Benz Battery Deal

On December 8, 2025, the Korea Times reported that LG Energy Solution has landed a $1.4 billion contract to supply electric vehicle batteries to Mercedes-Benz, strengthening the long-standing partnership between the two companies.

The South Korean battery maker disclosed Monday that the deal is valued at roughly 8 percent of its revenue from last year. Under the agreement, LG Energy Solution will provide batteries for Mercedes-Benz electric vehicles sold in Europe and North America from March 1, 2028, through June 30, 2035. The company noted that the final contract value and terms could change depending on future discussions with the automaker.

The new deal builds on a broader supply agreement signed in September. Under that earlier contract, LG Energy Solution committed to supplying a total of 107 gigawatt-hours of batteries to Mercedes-Benz. Of that amount, 75 GWh will be delivered to a Mercedes affiliate from July 30, 2029, through Dec. 31, 2037, while the remaining 32 GWh will be supplied to the automaker’s main group from Aug. 1, 2028, through Dec. 31, 2035.

The partnership between the two companies continues to deepen. Last month, LG Energy Solution CEO Kim Dong-myung and senior executives from LG Group affiliates met with Mercedes-Benz Chairman Ola Kaellenius at LG’s headquarters in Seoul. Their discussions focused on software-defined vehicles, in-vehicle artificial intelligence systems, batteries, and future collaboration on integrated automotive components across LG’s business units.

LG Energy Solution’s profitability has been improving as it secures next-generation battery contracts with major automakers and expands local production capacity for energy storage systems. The company reported strong third quarter results, posting revenue of about 5.7 trillion won, or $3.89 billion, and an operating profit of 601.3 billion won. This marked its second straight profitable quarter even without U.S. Inflation Reduction Act tax credits.

LG Energy Solution Ltd. is a battery company headquartered in Seoul, South Korea. LGES is one of the largest battery makers in the world alongside CATL, Panasonic, SK Innovation, and Samsung SDI.

LG Is Supplier to a Growing Roster of Leading Global Automakers

LG Energy Solution supplies batteries and battery cells to a growing roster of leading global automakers. Toyota is set to begin using LG Energy Solution’s high nickel NCMA battery modules in battery electric vehicles assembled in the United States starting in 2025.

Through a long-standing joint venture, LG Energy Solution also provides battery cells to Hyundai Motor Group, supporting electric models across Hyundai, Kia, and Genesis. Honda has partnered with LG Energy Solution on a joint venture battery production facility in the United States to power Honda and Acura electric vehicles sold in North America.

Rivian is another key customer, with LG Energy Solution securing a five year agreement to supply cylindrical battery cells for the EV maker’s upcoming vehicles. In Europe, LG Energy Solution has also signed a contract to supply lithium iron phosphate batteries to Ampere, the electric vehicle unit spun out of Renault Group, beginning in 2025.

In addition to these partners, in December 2024, General Motors and LG Energy Solution announced they are extending their 14-year battery technology partnership to include prismatic cell development.

Comprehensive ESG Strategy

LG Energy Solution outlines a comprehensive Environmental, Social, and Governance (ESG) strategy focused on environmental, social, and governance responsibilities. The company tracks progress through ESG indicators, discloses results transparently, and works closely with global partners to support sustainable growth.

It joined the United Nations Global Compact in 2022, committing to international principles on human rights, labor, environmental protection, and anti-corruption, while also supporting the UN Sustainable Development Goals. LG Energy Solution is a board-level member of the Global Battery Alliance, helping shape global standards for battery carbon footprint, human rights, child labor, and the development of the Battery Passport system.

On the environmental front, LG Energy Solution was the first battery maker to join both RE100 and EV100 in 2021. It aims to power all global operations with 100 percent renewable electricity by 2030 and transition its entire vehicle fleet to eco-friendly vehicles by the same year. Several facilities in the United States and Poland already run on fully renewable energy. The company also supports the Task Force on Climate-related Financial Disclosures and has committed to carbon neutrality by 2050.

Social responsibility is addressed through participation in the Responsible Business Alliance, the Responsible Minerals Initiative, and the Responsible Labor Initiative. LG Energy Solution also joined the Fair Cobalt Alliance in 2022 to help eliminate forced and child labor in cobalt mining in the Democratic Republic of the Congo while supporting local communities.