Seoul: South Korean battery maker LG Energy Solution Ltd. announced it has signed two significant supply agreements with Germany's Mercedes-Benz AG, amounting to a total of 107 gigawatt-hours (GWh) in battery volume.

According to Yonhap News Agency, the agreements involve supplying 32 GWh of batteries to Mercedes-Benz and an additional 75 GWh to the automaker's affiliate, though further details were not disclosed. Market analysts estimate the total value of these deals to be approximately 15 trillion won (US$10.7 billion). The contract with Mercedes-Benz is scheduled to run from 2028 to 2035, while the arrangement with its affiliate will span from 2029 to 2037.

LG Energy Solution indicated in a regulatory filing that the contract terms, including pricing and supply volume, remain subject to negotiation with their clients. It is anticipated that the company will provide its next-generation 46-series cylindrical batteries to the European automaker.

The combined battery supply is sufficient to produce 1.5 million units of electric vehicles, each with a 70 kilowatt-hour (kWh) capacity. The market price for these 46-series cylindrical batteries is estimated to range from $90 to $110 per kWh.

Industry experts note that this deal is particularly significant as LG Energy Solution has managed to secure substantial contracts with Mercedes-Benz, outpacing competitors from China and underscoring South Korea's advanced battery technology capabilities. The company is expected to leverage this success to enhance its presence in the global market, capitalizing on its competitive advantage with the 46-series batteries.