Seoul: South Korean battery maker LG Energy Solution Ltd. said Monday it has signed a battery supply deal worth 2.06 trillion won (US$1.39 billion) with Mercedes-Benz AG. The supply, which will begin in March 2028, will run through June 2035, LG Energy Solution said in a regulatory filing.

According to Yonhap News Agency, the agreement marks a significant milestone for LG Energy Solution as it strengthens its position in the global battery market. The long-term contract with Mercedes-Benz AG underscores the growing demand for electric vehicle batteries and the strategic partnerships forming between automakers and battery manufacturers. The deal is expected to enhance LG Energy Solution's market presence and support Mercedes-Benz AG's ambitious electric vehicle production plans.