Quick HighlightsMercedes-Benz signs long-term supply deal with LG Energy Solution for EV batteries.LG will supply 32 GWh by 2035 and an additional 75 GWh by 2037, totaling 107 GWh.Deal supports Mercedes-Benz’s carbon neutrality target by 2039.LG Energy Solution expanding production in US and Europe to strengthen supply chains.LG Energy Solution’s India subsidiary (est. 2023) already serves automotive, IT, and energy sectors; talks ongoing with JSW for local battery manufacturing.Mercedes-Benz Secures Long-Term EV Battery Deal with LG Energy SolutionMercedes-Benz has taken a major step forward in its electric vehicle (EV) journey by signing a long-term supply deal with LG Energy Solution , a leading South Korea-based battery manufacturer. The agreement is set to provide a stable and secure battery supply to support Mercedes-Benz’s growing EV production and reinforce its strategy to achieve carbon neutrality by 2039 .This deal not only ensures the German automaker’s access to high-quality batteries but also strengthens its competitive position in the global EV market, which is rapidly evolving as traditional carmakers transition toward electrification.Details of the Supply AgreementAccording to LG Energy Solution’s recent filing, the company will supply 32 gigawatt-hours (GWh) of batteries to Mercedes-Benz by the end of 2035. An additional 75 GWh is expected to be delivered by 2037, bringing the total to a staggering 107 GWh over the next decade.Such volumes highlight the scale of Mercedes-Benz’s electrification plans, as the automaker expands its EV lineup and ramps up production in Europe, North America, and Asia.Why the Deal MattersThe long-term nature of this contract is significant. For Mercedes-Benz, it guarantees a steady flow of lithium-ion batteries—one of the most crucial and expensive components of electric vehicles. This security allows the company to focus on scaling its EV production while minimizing risks associated with global supply chain disruptions.For LG Energy Solution, the partnership underscores its growing dominance in the EV battery industry. With existing partnerships with Tesla Inc. and General Motors, the Mercedes-Benz deal further cements LG’s reputation as a reliable supplier to global automotive leaders.Strengthening Supply Chains in US and EuropeThis agreement is part of LG Energy Solution’s broader strategy to expand its battery plants in the US and Europe. By establishing manufacturing facilities closer to its customers, LG aims to build more resilient supply chains and reduce reliance on China for key battery components.This shift is particularly important as governments in the US and Europe continue to push for localized production of clean energy technologies under policies that incentivize domestic manufacturing.Contribution to Carbon Neutrality GoalsMercedes-Benz has set an ambitious goal of achieving carbon neutrality by 2039 , and secure access to sustainable batteries is at the core of this mission. With a consistent battery supply from LG Energy Solution, the automaker can accelerate its EV rollout and meet growing consumer demand for zero-emission vehicles.The collaboration reflects both companies’ shared vision of building a sustainable and efficient transportation ecosystem while also advancing global climate goals.LG Energy Solution’s Presence in IndiaInterestingly, LG Energy Solution is also expanding its footprint in India. Its Indian subsidiary, established in 2023 and headquartered in New Delhi , caters to the automotive, IT, and energy sectors. The company provides lithium-ion batteries for electric vehicles, mobility solutions, and energy storage systems (ESS).In addition, LG Energy Solution is currently in discussions with the JSW Group to manufacture batteries locally in India. If successful, this move could further diversify its production base and strengthen India’s growing EV ecosystem.