South Korean electric vehicle (EV) battery manufacturer LG Energy Solution Ltd (LGES) has announced it has signed an agreement to supply batteries for US EV manufacturer Rivian Automotive Inc for future models produced in the US.
The batteries will be produced at LGES’ stand-alone manufacturing facility, LG Energy Solution Arizona, currently under construction near Queen Creek in the US state of Arizona and scheduled for completion in late 2025.
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LGES confirmed it has agreed to supply 67 GWh of its newly-developed 4695-type cylindrical battery cells to Rivian over five-year period. These batteries will be fitted initially to Rivian’s R2 model for the North American market, produced at the company’s facility in Normal, Illinois.
The company claims the high-density batteries, measuring 46 mm in diameter and 95 mm in height, offer a good driving range and high levels of safety. LGES was scheduled to begin production of its 46-Series battery for the first time at its Ochang plant in South Korea in the second half of 2024.
LGES said the supply agreement with Rivian “is expected to further strengthen LG Energy Solution’s presence in the US market and its plans to actively respond to the IRA by developing and supplying competitive battery cells in a timely manner while expanding into new markets.”
LGES has another stand-alone battery manufacturing plant in the US state of Michigan, which was built a decade ago and is currently being expanded from 5GWh to 25GWh per year. The company also has EV battery joint ventures in the country with major automakers including General Motors, Honda and Hyundai and has supply agreements with Ford and other automakers in the region.
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By GlobalDataLGES CEO David Kim said in a statement: “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 LGES in expanding its client base within the cylindrical battery segment.”
