Mercedes-Benz has sealed a multi-billion-dollar deal with LG Energy to bolster its electrification strategy for the long haul.
The details: The $11 billion agreement is anchored by two contracts aimed at boosting Mercedes’ battery supply and represents the largest orders to date for LG Energy’s 46-series cells, according to multiple reports.
The first contract began Sept. 2 and runs through Dec. 31, 2035; the second, listed under a U.S. “Mercedes-Benz affiliate,” begins July 30, 2029, and continues through Dec. 31, 2037.
Both follow an earlier deal disclosed in LG Energy Solution’s October 2024 regulatory filing to supply 50.5 GWh of batteries to a “U.S. Mercedes-Benz affiliate.”
Why it matters: The investment underscores Mercedes’ commitment to securing long-term battery supply (even as global EV demand supposedly slows) signaling confidence that the market will regain momentum in the years ahead.
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Between the lines: The expanded deal coincides with fresh insight into Mercedes’ EV roadmap, shared in a recent Design News interview with Chairman of the Board of Management Ola Källenius.
The company’s EV rollout will vary across its 150 markets, tailored to adoption rates and regulatory conditions.
By decade’s end, every model in Mercedes’ lineup, from the flagship S-Class to entry-level vehicles, will offer an electric option.
The automaker’s new flexible Van.Electric Architecture (EA) platform, showcased in the Vision V Concept, could also make its way to the U.S.
What they’re saying: “So, every single relevant model, from top to bottom, will be available electric. But because we're all not going to be at 100% electric in 2030,” said Källenius, via Design News. “In fact, then we said where market conditions allow, we have made the decision that we will also carry the next generation high-tech, electrified combustion vehicles into all the segments that you're used to from Mercedes.”
Bottom line: Mercedes’ massive battery deal signals that EVs will remain central to the lineup long term. Dealers can expect a steady flow of electric models alongside next-gen hybrids and combustion vehicles—offering flexibility in inventory but also requiring continued investment in EV infrastructure, training, and customer education.
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