2024.10.11
LG Energy Solution wins 10-year battery supply deal from Mercedes
By
Moon Joon-hyun, The Korea Herald - LG Energy Solution has secured a major
long-term contract to supply electric vehicle batteries to a key affiliate of
Mercedes-Benz.
The
deal, announced Tuesday, primarily targets North America and other key markets,
although the exact regions were not specified.
Under
the terms of the agreement, LG will provide 50.5 gigawatt-hours of EV batteries
over 10 years, starting in 2028. While financial details of the deal remain
undisclosed, industry analysts believe it likely reaches billions of dollars
given the volume of batteries involved.
This
contract is particularly significant as it marks the first large-scale battery
supply agreement LG has secured with a major European automaker beyond its
existing ties with Tesla.
Industry
analysts believe LG’s next-generation 46 Series cylindrical batteries will be
supplied in the deal. Representing a major leap forward in battery technology,
these new cells are expected to significantly outperform the current 2170
battery model used in many EVs today.
To
meet the demands of this new contract, LG Energy Solution will produce these
advanced batteries at a new factory currently being built in Arizona. This
plant, which will focus solely on manufacturing cylindrical batteries like the
46 Series, is LG's second standalone factory in North America.
Construction
of the facility began in April, and once completed, the factory will have an
annual production capacity of 36 GWh, enough to supply hundreds of thousands of
EVs each year. The plant is expected to be fully operational by 2026,
positioning LG to ramp up production well ahead of the 2028 contract start date
with Mercedes-Benz.
Although
the Arizona plant will likely play a key role in fulfilling this deal, LG
remains cautious about releasing too many specifics at this stage. “We are
unable to confirm any additional details beyond what has been announced,” a
company official said.
Source: https://www.koreaherald.com/view.php?ud=20241008050470