Mercedes Opts for Korean Manufacturer for Massive Battery Order

Metaverse Planet September 4, 2025Last Updated: September 4, 2025

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According to the Korean press, Mercedes has chosen LG Energy Solution (LGES) for a massive battery order totaling 107 GWh, following intense competition with Chinese rivals like CATL and Farasis.

A new battery agreement has been signed between Mercedes-Benz and LG Energy Solution (LGES). Some of the batteries will be supplied to the U.S. and some to Europe. Although not officially confirmed, the cells to be delivered are likely to be 46-series cylindrical batteries.

Details of the Agreement

According to official documents released by LGES, the agreement is divided into two parts. 75 GWh of batteries will be supplied to the U.S. between July 2029 and December 2037, while 32 GWh will be supplied to Europe between August 2028 and December 2035.

The monetary value of the total 107 GWh order was not disclosed. However, South Korean media estimates the deal is worth around 15 trillion won, or about 9.3 billion euros. This calculation is based on the current prices of 46-series cylindrical cells.

LGES currently produces this battery format in South Korea and is preparing to open a new factory in Arizona, USA, in 2026. Tesla and Rivian are also expected to source from this factory.

Mercedes-Benz has also shown interest in cylindrical cells. The Concept AMG GT XX model, based on the brand’s new AMG.EA platform, uses these batteries. In contrast, it was announced that prismatic cells would be used for the CLA’s MMA platform and the GLC and new C-Class’s MB.EA-M platforms. For the large vehicle MB.EA-L platform, it is stated that batteries will not require a module level, making cylindrical cells a viable option.

According to the Korea Economic Daily, the new batteries for Mercedes-Benz will be manufactured at the LGES factory in Arizona. If the cell format is confirmed, this order will be the “largest single order for LG Energy’s 46-series cylindrical cells.”

The cooperation between the two companies has been strengthening rapidly. In October 2024, LGES signed a 50.5 GWh contract with Mercedes-Benz. At that time, details were limited, but the South Korean press wrote that the agreement also covered 46-series cells and that deliveries would begin in 2028. With the new contract, the total volume between the two companies will exceed 150 GWh.