LG Energy Solution Bags $6.8 Billion EV Battery Deal, Likely with BMW

LG Energy Solution has secured a major electric vehicle (EV) battery supply agreement worth around $6.8 billion, marking one of the biggest deals in the battery sector this year. While the company has not officially named the client, industry reports suggest the batteries are intended for next-generation EVs from BMW.

The deal is expected to run for about 10 years and will focus on supplying advanced 46-series cylindrical battery cells, a new format gaining popularity among global automakers for its improved performance.

Focus on Next-Gen 46-Series Batteries

LG Energy Solution is rapidly shifting toward these 46-series cells, which offer higher energy density, faster charging, and better efficiency compared to traditional battery designs. The company has already secured over 100 GWh of orders for these batteries in the first quarter of 2026, showing strong global demand.

Expansion Plans in Full Swing

To meet rising demand, LG is expanding production capacity. Mass production has already started in South Korea, while a new facility in Arizona, USA, is expected to begin production later in 2026. The company’s total battery order backlog has now crossed 440 GWh, strengthening its position in the global EV supply chain.

Industry Context

This deal comes at a crucial time for the battery industry. In late 2025, Ford Motor Company canceled a $6.5 billion battery agreement with LG due to slowing EV demand and a shift toward hybrid vehicles. Against this backdrop, securing a large, long-term deal highlights LG’s strong push into next-generation battery technology.

Big Picture

The agreement—widely linked to BMW’s upcoming Gen6 EV platform—signals growing competition among automakers to adopt advanced battery systems. It also reinforces LG Energy Solution’s strategy to lead in high-performance cylindrical batteries as the EV market evolves.