Battery producer LG Power Resolution simply introduced that its Arizona subsidiary has signed a long-term provide settlement with US automaker Rivian for 4695 cylindrical batteries. The cells can be produced at LG Power Resolution Arizona’s new standalone US facility starting subsequent 12 months and can energy Rivian’s upcoming R2 BEVs.
LG Power Resolution (LGES) is a derivative entity of LG Chem specializing in battery growth and manufacturing. Within the 4 brief years because the entity was based, the Korean firm has established partnerships and provide agreements with OEMs worldwide and is at present 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 lately determined to carry its operations stateside over from Europe. Toyota additionally has a provide settlement in place with LG Power Resolution.
In 2022, we lined the information that LG Power Resolution was investing $450 million to provide 4680 battery cells, a format pioneered by Tesla. The corporate has since developed taller, higher-capacity cells referred to as 4695.
At this time, the corporate introduced a brand new deal for these 4695 cylindrical batteries, which can be produced in Arizona and delivered to Rivian for its R2 fashions.
Rivian R2 can be powered by LG Power Resolution batteries
LG Power Resolution 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 top of 95mm. LG Power Resolution defined that its 20 years of analysis and growth in cylindrical batteries have gone into its next-generation 4695 cells for Rivian.
The battery specialist states that its bigger cells will supply OEMs long-range and excessive security whereas delivering over six occasions the capability of the prevailing 2170 cylindrical cells widespread in BEV battery modules immediately. LG Power Resolution CEO David Kim spoke in regards to the firm’s 4695 batteries and its strong provide settlement with Rivian:
As a result of dynamic nature of the present EV market, an rising variety of international automakers are demonstrating a robust choice for a various vary of battery kind elements. This massive-scale order from Rivian for 4695 batteries marks a key milestone for LG Power Resolution in increasing its consumer base inside the cylindrical battery phase.
At this time, we additionally realized that the batteries for Rivian will finally 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 applied in R2 fashions bought 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 effectively over 100,000 pre-orders have since been positioned. It will likely be assembled on the Regular, IL, facility and will finally transfer to the American Automaker’s second manufacturing plant, which stays underneath building 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 needs to be proper round when LG Power Resolution begins producing batteries for these Rivian fashions in Arizona.
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