LG Energy Solution has secured a substantial battery supply agreement with Mercedes-Benz AG, valued at approximately 2.06 trillion won ($1.39 billion). According to a regulatory filing, the supply period is slated to commence in March 2028 and continue through June 2035.

The contract volume represents roughly 8 percent of the Korean battery manufacturer's total annual sales, which amounted to 25.6 trillion won in 2024. The batteries under this pact are designated for the North American and European markets.

The company noted that specific terms, including the contract volume and duration, remain subject to modification based on mutual agreement with the client. Industry analysts suggest the batteries are likely intended for mid-range and more affordable electric vehicle lineups from Mercedes-Benz.

This deal follows Mercedes-Benz's earlier announcement to launch 40 new models globally by 2027, covering various segments from entry-level to premium. It also builds upon a prior statement from LG Energy Solution in September, which referenced two supply agreements with Mercedes-Benz totaling 107 gigawatt-hours, speculated by observers to include next-generation 46-series cylindrical batteries for high-end models.