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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] G Energy Solution has secured a major supply deal with BMW to provide cylindrical electric vehicle (EV) batteries worth over KRW 10 trillion, marking its first battery supply agreement with the German carmaker.
According to industry sources on April 30, LG Energy Solution recently passed BMW’s supplier selection process for its next-generation EV platform and is currently negotiating detailed terms, including pricing and volume. The contract is expected to run for up to 10 years, with annual supply of around 10GWh.
The batteries will be produced at LG Energy Solution’s Arizona plant in the U.S., which is scheduled to begin operations later this year.
The deal is seen as validation of the company’s advanced “46-series” cylindrical battery technology, following existing partnerships with Tesla, Mercedes-Benz, Rivian, and Chery Automobile.
BMW is expected to source 46-series batteries from multiple suppliers, including Samsung SDI and CATL. The batteries will be used in BMW’s next-generation EV platform, “Neue Klasse.”
The 46-series batteries offer significant performance improvements over conventional 2170 cells, with roughly five times higher energy capacity and six times greater output, along with improved energy density and space efficiency—key advantages for high-performance EVs.
Separately, LG Energy Solution reported Q1 revenue of KRW 6.56 trillion and an operating loss of KRW 207.8 billion, marking a second consecutive quarterly loss. The company expects a rebound in Q2, supported by new EV battery orders and expanded energy storage system (ESS) contracts.
LG Energy Solution said it secured over 100GWh of additional 46-series battery orders in Q1 alone, bringing total backlog to more than 440GWh.
The ESS business is also emerging as a key growth driver. Following a KRW 6 trillion supply deal with Tesla last July, the company signed another agreement in February with a North American strategic client for next-generation ESS products, including lithium iron phosphate (LFP) batteries with 15% improved cost efficiency. Industry observers expect ESS battery revenue to surpass EV battery sales for the first time this year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
