Battery manufacturer LG Energy Solution just announced that its Arizona subsidiary has signed a long-term supply agreement with US automaker Rivian for 4695 cylindrical batteries. The cells will be produced at LG Energy Solution Arizona’s new standalone US facility beginning next year and will power Rivian’s upcoming R2 BEVs.
LG Energy Solution (LGES) is a spinoff entity of LG Chem specializing in battery development and manufacturing. In the four short years since the entity was founded, the Korean company has established partnerships and supply agreements with OEMs worldwide and is currently one of the leaders in its respective market behind long-time frontrunner CATL.
When the Biden administration introduced the Inflation Reduction Act, which included tax incentives for BEVs and their batteries assembled on US soil, LGES was one the most popular battery manufacturers OEMs reached out to for joint ventures to set up localized cell manufacturing in North America.
Since then, we’ve seen facility plans announced between LGES and automakers like Hyundai Motor Group, Stellantis, Honda, and Ford, which recently decided to bring its operations stateside over from Europe. Toyota also has a supply agreement in place with LG Energy Solution.
In 2022, we covered the news that LG Energy Solution was investing $450 million to produce 4680 battery cells, a format pioneered by Tesla. The company has since developed taller, higher-capacity cells called 4695.
Today, the company announced a new deal for those 4695 cylindrical batteries, which will be produced in Arizona and delivered to Rivian for its R2 models.
Rivian R2 will be powered by LG Energy Solution batteries
LG Energy Solution shared details of its latest supply agreement this afternoon. The company has signed on to provide Rivian with its advanced 4695 cylindrical batteries for over five years, delivering a total energy capacity of 67 GWh during that time.
The “4695” nomenclature refers to the dimensions of the battery cells, which have a diameter of 46mm and a height of 95mm. LG Energy Solution explained that its 20 years of research and development in cylindrical batteries have gone into its next-generation 4695 cells for Rivian.
The battery specialist states that its larger cells will offer OEMs long-range and high safety while delivering over six times the capacity of the existing 2170 cylindrical cells popular in BEV battery modules today. LG Energy Solution CEO David Kim spoke about the company’s 4695 batteries and its robust supply agreement with Rivian:
Due to the dynamic nature of the current EV market, an increasing number of global automakers are demonstrating a strong preference for a diverse range of battery form factors. This large-scale order from Rivian for 4695 batteries marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment.
Today, we also learned that the batteries for Rivian will eventually be manufactured at its pending facility in Arizona within the first year of production, then delivered to Rivian’s assembly plant in Normal, Illinois, where they will be implemented in R2 models sold in the North American market.
Construction of LGES’ Arizona facility is underway and expected to be completed and begin full-scale production in less than two years from now.
The Rivian R2 was unveiled this past March to much fanfare, and well over 100,000 pre-orders have since been placed. It will be assembled at the Normal, IL, facility and may eventually move to the American Automaker’s second manufacturing plant, which remains under construction in Georgia.
During its reveal, Rivian shared that it expects the R2 BEV to reach the market in the first half of 2026. If that timeline holds, it should be right around when LG Energy Solution begins producing batteries for those Rivian models in Arizona.
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