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  • LG Energy Solution to Supply 46100 Battery Cells to Mercedes-Benz

    LG Energy Solution to Supply 46100 Battery Cells to Mercedes-Benz

    LG Energy Solution will supply Mercedes-Benz with a new 46100 cylindrical battery cell for the German automaker’s next-generation electric vehicles starting in 2028.

    The agreement expands a series of four long-term supply contracts signed between the two companies since October 2024.

    New Dimensions for Cylindrical Packs

    With a diameter of 46 millimetres and a height of 100 millimetres, the 46100 format is an unannounced variation within the broader 46-series family. The cylindrical format gained industry prominence after Tesla adopted the 4680 size. Other manufacturers have experimented with 4695 and 46120 designs. The 100-millimetre height fits the specific packaging requirements of Mercedes-Benz vehicle architectures.

    Pilot manufacturing for the 46100 cell will take place at LG Energy Solution’s domestic facility in Ochang, South Korea. That site will calibrate machinery and refine production tolerances before equipment ships to Europe. Mass production will run at the group’s manufacturing complex in Wrocław, Poland, where line installation begins next year. The supplier is also weighing capital expenditures for dedicated module assembly lines at the Polish site to deliver complete clusters directly to vehicle assembly plants.

    Diversification Across Cell Geometries

    Automakers in Europe and Asia are rethinking their dependence on pouch and prismatic cell formats. Cylindrical cells offer superior structural stability and heat dissipation. That reduces the risk of thermal runaway in high-output drivetrains. Mercedes-Benz previously relied heavily on pouch cells from suppliers including SK On and Farasis Energy. Safety recalls and module complexity pushed the brand toward mixed procurement strategies.

    LG Energy Solution has built out manufacturing capacity for varied cylindrical specifications. The company started production of 4695 cells at the Ochang plant late last year. It is preparing to manufacture cylindrical units ranging from 4680 to 46120 specifications at its facility in Arizona by the end of this year. Adding a 46100 line gives the manufacturer a customized offering for premium European carmakers without redesigning its core cell chemistry.

    Procurement Rivalry Among Korean Suppliers

    Mercedes-Benz is maintaining a competitive supplier base across Asian manufacturers rather than granting exclusivity to a single partner. In April, the carmaker signed its first long-term electric vehicle battery contract with Samsung SDI. China’s CATL continues to supply large volumes across multiple vehicle platforms. Sourcing from multiple cell makers prevents bottlenecks and keeps downward pressure on pricing per kilowatt-hour.

    For Korean battery producers, securing multi-year European supply pacts offsets softer domestic electric vehicle adoption and tariff uncertainties in North America. The challenge sits in production yield rates for large-diameter cells. Scaling 46-millimetre lines requires tight welding tolerances and rapid tabless assembly processes. Both have created ramp-up delays across the sector.

    Manufacturing Milestones Ahead

    Validation testing on the Ochang pilot line will finish before commercial tooling is installed in Poland next year. Initial volume shipments will follow for the 2028 model rollout, building on supply agreements executed over the past two years as Mercedes-Benz overhauled its platform roadmap.

  • LG Energy Solution Buys 80,000 Tonnes of Arkansas Lithium in Ten-Year Deal

    LG Energy Solution Buys 80,000 Tonnes of Arkansas Lithium in Ten-Year Deal

    South Korea’s LG Energy Solution signed a ten-year binding agreement with Smackover Lithium to buy 8,000 tonnes of battery-grade lithium carbonate annually starting in 2029.

    The contract secures 80,000 tonnes in total from the South West Arkansas Project, representing more than a third of the site’s planned first-phase output of 22,500 tonnes per year. Commercial terms and pricing remain confidential.

    Smackover Lithium Direct Extraction Project

    Smackover Lithium operates as a joint venture formed in 2024 between Standard Lithium, which holds 55 per cent, and Norwegian energy firm Equinor, which owns 45 per cent. The venture uses direct lithium extraction to pull the metal straight from underground brine rather than relying on evaporation ponds across sites in Arkansas and Texas.

    Trading house Trafigura locked in another 8,000 tonnes annually from the same project in March. Together, the Trafigura and LG Energy Solution contracts cover roughly 90 per cent of the venture’s target to pre-sell 80 per cent of its planned capacity.

    Three export credit agencies have offered more than $1 billion in prospective debt financing to back the buildout. Project partners expect to reach a final investment decision before the end of the year.

    Local Sourcing for North American Cell Plants

    For LG Energy Solution, securing Arkansas supply ensures raw materials bypass restrictions tied to foreign entities of concern. Asian battery manufacturers face strict domestic sourcing rules in the United States, driving heavy investment into local processing deals and joint-venture extraction projects.

    The Seoul-based manufacturer operates an expanding manufacturing network across North America, targeting more than 50 gigawatt-hours of lithium iron phosphate production capacity by the end of 2026 across five sites. That footprint supplies stationary storage systems, including units for Tesla, alongside electric vehicle programmes.

    Production recently started at the company’s Lansing facility in Michigan, which will add nickel-manganese-cobalt cell lines for Toyota electric vehicles alongside its existing storage battery output.