LG Energy Solution’s (LGES) subsidiary in Arizona has signed a battery supply agreement with U.S.-based electric vehicle (EV) manufacturer Rivian.
Under the contract, LGES will supply Rivian with 4695 cylindrical batteries over a five-year period, totaling 67 gigawatt-hours (GWh) in capacity.
The EV batteries will be manufactured at LGES’s standalone battery facility in Arizona and are intended for use in Rivian’s upcoming R2 model, aimed at the North American market.
LGES joins a trend led by Tesla, where automakers such as Mercedes are adopting larger cylindrical battery cells. These larger cells can extend driving range and reduce the number of cells needed for a battery pack of a given capacity.
LG Energy Solution says its 4695 cylindrical battery has a diameter of 46mm and height of 95mm. It boasts six times the capacity of the current 2170 cylindrical battery, providing higher energy density, better space efficiency, and enhanced safety.
LG Energy Solution will manufacture the batteries at its Arizona facility, supplying them to Rivian’s plant in Illinois. These batteries will be used in Rivian’s R2 model for the North American market.
This partnership supports LG Energy Solution’s expansion in the U.S., aligning with the Inflation Reduction Act (IRA) incentives by focusing on local production. The company aims to meet automaker demand for high-capacity batteries.
With over 20 years of experience and a large patent portfolio, LG Energy Solution’s advanced 46-series cylindrical batteries have gained substantial industry interest, positioning the company to lead in the growing EV battery market.
Rivian Automotive earlier said it produced 13,157 vehicles at its manufacturing facility in Normal, Illinois and delivered 10,018 vehicles for the third-quarter ending September 30, 2024.
Rivian has also revised its annual production guidance to 47,000 – 49,000 vehicles and annual delivery outlook to 50,500 – 52,000 vehicles as it is experiencing a production disruption due to a shortage of a shared component on the R1 and RCV platforms.
Baburajan Kizhakedath