Battery producer LG Power Answer simply introduced that its Arizona subsidiary has signed a long-term provide settlement with US automaker Rivian for 4695 cylindrical batteries. The cells will likely be produced at LG Power Answer Arizona’s new standalone US facility starting subsequent 12 months and can energy Rivian’s upcoming R2 BEVs.
LG Power Answer (LGES) is a derivative entity of LG Chem specializing in battery improvement and manufacturing. Within the 4 brief years for the reason that entity was based, the Korean firm has established partnerships and provide agreements with OEMs worldwide and is presently one of many leaders in its respective market behind long-time frontrunner CATL.
When the Biden administration launched the Inflation Discount Act, which included tax incentives for BEVs and their batteries assembled on US soil, LGES was one the preferred battery producers OEMs reached out to for joint ventures to arrange localized cell manufacturing in North America.
Since then, we’ve seen facility plans introduced between LGES and automakers like Hyundai Motor Group, Stellantis, Honda, and Ford, which not too long ago determined to carry its operations stateside over from Europe. Toyota additionally has a provide settlement in place with LG Power Answer.
In 2022, we coated the information that LG Power Answer was investing $450 million to provide 4680 battery cells, a format pioneered by Tesla. The corporate has since developed taller, higher-capacity cells known as 4695.
Right now, the corporate introduced a brand new deal for these 4695 cylindrical batteries, which will likely be produced in Arizona and delivered to Rivian for its R2 fashions.
Rivian R2 will likely be powered by LG Power Answer batteries
LG Power Answer shared particulars of its newest provide settlement this afternoon. The corporate has signed on to offer Rivian with its superior 4695 cylindrical batteries for over 5 years, delivering a complete vitality capability of 67 GWh throughout that point.
The “4695” nomenclature refers back to the dimensions of the battery cells, which have a diameter of 46mm and a peak of 95mm. LG Power Answer defined that its 20 years of analysis and improvement in cylindrical batteries have gone into its next-generation 4695 cells for Rivian.
The battery specialist states that its bigger cells will provide OEMs long-range and excessive security whereas delivering over six instances the capability of the prevailing 2170 cylindrical cells common in BEV battery modules at this time. LG Power Answer CEO David Kim spoke concerning the firm’s 4695 batteries and its strong provide settlement with Rivian:
Because of the dynamic nature of the present EV market, an rising variety of world automakers are demonstrating a powerful choice for a various vary of battery kind components. This massive-scale order from Rivian for 4695 batteries marks a key milestone for LG Power Answer in increasing its shopper base inside the cylindrical battery phase.
Right now, we additionally discovered that the batteries for Rivian will ultimately be manufactured at its pending facility in Arizona inside the first 12 months of manufacturing, then delivered to Rivian’s meeting plant in Regular, Illinois, the place they are going to be carried out in R2 fashions offered within the North American market.
Development of LGES’ Arizona facility is underway and anticipated to be accomplished and start full-scale manufacturing in lower than two years from now.
The Rivian R2 was unveiled this previous March to a lot fanfare, and properly over 100,000 pre-orders have since been positioned. It will likely be assembled on the Regular, IL, facility and will ultimately transfer to the American Automaker’s second manufacturing plant, which stays underneath development in Georgia.
Throughout its reveal, Rivian shared that it expects the R2 BEV to succeed in the market within the first half of 2026. If that timeline holds, it ought to be proper round when LG Power Answer begins producing batteries for these Rivian fashions in Arizona.
FTC: We use revenue incomes auto affiliate hyperlinks. Extra.
