Mercedes-Benz and LG strike $10.8 billion deal that could reshape modern EVs: 'Large-scale order'

Electric vehicle dealmaking continues to mark massive investments in the sector. The latest agreements between South Korea's LG and Germany's Mercedes-Benz for batteries are worth $10.8 billion, according to The Korea Economic Daily. 

What's more, the production will happen at LG's plant in Arizona, helping to secure a Western Hemisphere-based supply chain for the crucial energy storage system. 

The contracts will provide packs for the storied car brand in Europe and the United States from 2028 to 2035 and from 2029 to 2037. The work orders are for LG's 46 series cylindrical cells. The name references the battery's 46-centimeter, or just over 18-inch, diameter. 

"Beating Chinese competitors to win such a large-scale order shows LG's clear advantage in the 46 series and confirms the competitiveness of Korean battery technology," an unnamed industry executive said. 

It will result in enough packs to power 1.5 million EVs, LG's largest 46 order. 

The contract is notable given recent policy changes by the U.S. federal government to nix EV tax incentives early at the end of September; $4,000 to $7,500 in rebates were available for certain new and used models. BloombergNEF estimated that global EV sales are expected to reach 22 million this year, a 25% increase from 2024. That's despite a U.S. slowdown. 

But others are still making a push for more clean rides. Ford has plans to start building a $30,000 electric truck in 2027, for example. It's retiring two top-selling gas-burners in the process, Electrek reported. 

Each EV that replaces a gas guzzler prevents thousands of pounds of heat-trapping tailpipe gases that are a human health risk, plaguing lungs, hearts, and even minds, according to government data and other studies. 

EVs are a long-term value for the planet and pocketbooks. Owners typically save $1,500 a year in gas and service costs along with the pollution prevention perks. U.S. News and World Report said that most batteries have eight-year, 100,000-mile warranties. 

Those savings can be compounded with a rooftop solar array, as free solar energy can be used to charge your cleaner ride. EnergySage can help you secure incentives for panels before they expire at the end of the year, as well. The trusted resource can also compare quotes and provide guidance on finding a professional installer — all contributing to up to $10,000 in savings. 

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At LG, the contracts represent another link between the tech company and Mercedes in the pursuit of regional supply chains apart from industry juggernauts in China, according to the Daily. 

It's part of a larger vision to meet premium EV demand. 

"LG is building battery plants in the U.S. and Europe for its clients, including Mercedes, Tesla Inc., and General Motors Co.," the Daily reported.

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