On the Dash:
- Mercedes-Benz secured a $1.4 billion, seven-year EV battery supply deal with LG Energy Solution for Europe and North America.
- The automaker plans to launch 15 new or refreshed electric models by 2027, including the CLA and GLC EVs.
- Large-scale battery investments show Mercedes-Benz is committed to an increasingly electric future despite regulatory and market uncertainties.
Mercedes-Benz inked a $1.4 billion deal with South Korea’s LG Energy Solution for high-voltage EV batteries, several Korean news outlets reported on Monday. LGES will supply the batteries under a seven-year agreement from March 2028 to June 2035, though the terms of the contract may change.
The batteries will power Mercedes-Benz electric vehicle models in Europe and North America as the automaker aims to secure supply for more than a dozen new and refreshed models over the next few years.
This marks the second major order from LGES this year. In September, the German automaker purchased 32 gigawatt-hours of batteries by 2035, plus an additional 75 GWh to an affiliated company by 2037.
The company plans to launch 15 new or refreshed electric models by the end of 2027. The CLA EV is expected in the first quarter of next year, followed by the GLC before year-end.
Despite regulatory changes, including the end of the $7,500 federal EV tax credit and shifting fuel economy rules, Mercedes-Benz’s large-scale battery investments signal confidence that the future of the auto industry is increasingly electric.
