Seoul: South Korean battery maker LG Energy Solution Ltd. announced on Monday that it has finalized a significant battery supply agreement valued at 2.06 trillion won (US$1.39 billion) with Mercedes-Benz AG.

According to Yonhap News Agency, the supply is scheduled to commence in March 2028 and will continue through June 2035, as detailed in a regulatory filing by LG Energy Solution. This deal represents 8 percent of the company's projected annual sales of 25.6 trillion won in 2024.

The batteries from this agreement will be distributed to markets in North America and Europe, as confirmed by LG Energy Solution. The company also noted that "the contract volume, duration and other terms are subject to change under an agreement with the client."