LG Energy Solution Shares Rally After Mercedes-Benz Deal
By Kwanwoo Jun
LG Energy Solution's shares rallied, following a billion-dollar electric-vehicle battery deal with Mercedes-Benz Group.
The South Korean EV battery maker's stock was recently 5.3% higher at 448,500 won, equivalent to $304.31, after climbing nearly 7% in Seoul trading early Monday. The stock is on course for its sharpest daily gain in more than a month.
The benchmark Kospi was last up 0.3%.
Earlier in the day, LG Energy said it secured a $1.4 billion contract to supply the German auto giant with EV batteries in Europe and North America from March 2028 to June 2035. The value of the contract represents about 8% of the South Korean battery maker's annual revenue in 2024.
The latest contract adds to recent EV battery deals between both companies. In September, LG Energy said that it would supply Mercedes-Benz with a combined 107 gigawatt hours of EV batteries in the coming years--32GWh in Europe for 2028-2035 and 75GWh in the U.S. for 2029-2037. They didn't disclose the vale of the two contracts.
The luxury German automaker's deeper ties with the South Korean battery maker comes as Mercedes-Benz's EV sales are rising despite a decline in its overall car sales.
Mercedes-Benz's third quarter overall car sales fell 12% from a year earlier, with sales in the U.S. and China dropping 17% and 27%, respectively. Its EV sales rose 9% during the same period, buoyed by the launch of its electric CLA model and improved availability of electric vans.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
December 07, 2025 23:32 ET (04:32 GMT)
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