South Korea’s LG Energy Solution (LGES) said it signed a deal to supply electric vehicle (EV) batteries to a Mercedes-Benz affiliate in North America and other regions, sending its shares soaring.
The battery maker, whose customers include Tesla General Motors and Hyundai Motor said in a regulatory filing it would supply 50.5 gigawatts per hour in batteries from 2028 to 2038, but said it cannot disclose the monetary size of the contract.
The contract announcement came on the same day LGES released a forecast showing a 40% fall in third-quarter operating profit to 448 billion won ($332.27 million), still higher than analyst estimates as it managed to expand supplies of EV batteries for U.S. customers as well as batteries for energy storage systems.
