LG Energy Solution Ltd (LGES), a South Korean electric vehicle (EV) battery manufacturer, has recently secured a deal to supply batteries for Rivian Automotive Inc, a prominent US EV manufacturer. The agreement entails the production of batteries at LGES’ upcoming manufacturing facility, LG Energy Solution Arizona, located near Queen Creek in Arizona, with an expected completion timeline of late 2025.
As part of the deal, LGES will provide Rivian with 67 GWh of its newly developed 4695-type cylindrical battery cells over a five-year period. These high-density batteries, measuring 46 mm in diameter and 95 mm in height, are designed to offer enhanced driving range and safety features. Initially, these batteries will be integrated into Rivian’s R2 model, specifically tailored for the North American market and manufactured at Rivian’s facility in Normal, Illinois.
LGES is set to commence production of its 46-Series battery at its Ochang plant in South Korea in the latter half of 2024. The company emphasized that this supply agreement with Rivian will bolster its presence in the US market and align with its strategy to develop and supply competitive battery cells promptly while expanding into new markets.
In addition to its Arizona facility, LGES also operates a battery manufacturing plant in Michigan, which is undergoing expansion from 5GWh to 25GWh per year. The company has established EV battery joint ventures with major automakers like General Motors, Honda, and Hyundai in the US market. Moreover, LGES has secured supply agreements with Ford and other automakers in the region, showcasing its commitment to advancing the EV industry.
LGES CEO, David Kim, expressed optimism about the collaboration with Rivian, stating that the order for 4695 batteries signifies a significant milestone for LGES in the cylindrical battery segment. With the EV market evolving rapidly and automakers seeking diverse battery form factors, LGES aims to cater to the changing demands and preferences of global automakers through innovative battery solutions.
The partnership between LGES and Rivian reflects the growing synergy between battery manufacturers and EV companies, paving the way for advancements in sustainable transportation and the electrification of the automotive industry. As the demand for EVs continues to rise, collaborations like these play a crucial role in driving innovation and shaping the future of mobility.
