“Surpassed China with Technology”… LG Energy Solution Secures Contract for 1.5 Million Batteries with Mercedes-Benz.

107 GWh capacity supply for the U.S. and EU
Enough to produce about 1.5 million electric vehicles,

[Seoul=Newsis] A view of the LG Energy Solution construction site in Arizona. (Photo courtesy of LG Energy Solution) *Resale and database prohibited,
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, ‘[Seoul=Newsis] Reporter Shin Hangseop = LG Energy Solution has signed two battery supply contracts with Mercedes-Benz. The total contract quantity exceeds 100 GWh, capable of producing 1.5 million electric vehicles.’,
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, ‘LG Energy Solution signing such a large-scale contract with Benz, a company that has been cooperating with Chinese battery suppliers, is seen as surpassing China’s price competitiveness based on its technology.’,
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, ‘On the 3rd, LG Energy Solution announced that it signed a contract with Mercedes-Benz to supply a total of 75 GWh of EV batteries in the U.S. The company also announced a total of 32 GWh EV battery supply contracts in Europe.’,
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, ‘The contract period for the U.S. is from July 2029 to December 2037, and for Europe, it is from August 2028 to December 2035.’,
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, ‘Main terms such as the contract amount have been withheld due to confidentiality agreements.’,
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, ‘An LG Energy Solution spokesperson said, “We cannot provide additional details beyond the disclosed information due to agreements with our client.”‘,
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, ‘The battery industry suspects that the products supplied under these two contracts are likely next-generation cylindrical batteries called the “46 series.”‘,
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, ‘This is the largest supply contract announced for the 46 series to date. Considering each has a 70 kWh capacity, it is enough to produce 1.5 million electric vehicles.’,
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, ‘An industry source commented, “It appears that LG Energy Solution has secured another significant supply contract for the 46 series with Mercedes-Benz, continuing from last year, thereby reinforcing its position as a key supplier through a strategic partnership.”‘,
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, ‘In October last year, LG Energy Solution had signed a contract to supply a total of 50.5 GWh of EV batteries to Mercedes-Benz in North America and other regions.’,
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, ‘Even then, the specific products and contract details were not disclosed, but they were also presumed to be for the 46 series. Accordingly, LG Energy Solution has signed contracts with Mercedes-Benz for more than 150 GWh with the 46 series.’,
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, ‘Until now, Mercedes-Benz has continually collaborated with Chinese battery companies like CATL and Farasis. As such, through this contract, LG Energy Solution is recognized as having overpowered Chinese companies, known for their cost competitiveness, with its technological prowess.’,
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, ‘The U.S. customs policy is also believed to have influenced this contract.’,
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, ‘Currently, LG Energy Solution is building a dedicated cylindrical battery production plant with a 36 GWh capacity in Arizona, with plans to start mass production of the 46 series next year.’,
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, ‘The 75 GWh supply quantity for the U.S. disclosed in the contract is expected to be supplied from the Arizona factory.’,
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, ‘The battery industry expects this will be a turning point to regain lost market share in Europe, where Chinese companies have taken the lead.’,
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, ‘Due to aggressive pricing strategies and establishing local bases by Chinese companies, Korean battery companies’ market share in Europe has been gradually declining. ‘,
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, ‘An industry representative stated, “By successfully securing large orders from Benz, LG Energy Solution has once again proven the advanced technological prowess of the Korean battery industry over Chinese competitors.”‘,
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, ‘The next-generation cylindrical battery known as the 46 series features a diameter of 46 mm and a height between 80 to 120 mm. Compared to the existing 2170 product, it has at least five times more energy and output, with excellent space efficiency.’,
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, ‘Due to reduced production processes per energy unit, it saves time and costs in manufacturing, which adds to its price competitiveness.’,
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