2 weeks Ago By [email protected](KoreaTimes)
LG Energy Solution's cylindrical batteries / Courtesy of LG Energy Solution By Nam Hyun-woo LG Energy Solution will supply its cylindrical batteries equivalent to 67 gigawatt-hours to U.S. electric vehicle (EV) maker Rivian over the next five years, the battery giant said Friday.
According to the company, its U.S. unit, LG Energy Solution Arizona, signed a supply agreement with Rivian, under which it will provide 67 gigawatt-hours of energy through its 4695 cylindrical battery.
The two sides did not reveal the deal’s value, but the market assumes it will surpass at least $6 billion, given the average battery cell price. The 4695 cylindrical battery, referring to its 46-milimeter diameter and 95-milimeter height, is a next-generation rechargeable battery, enabling longer travel range and higher safety for EVs. It features over six times the capacity of the existing 2170 cylindrical battery, due to its larger size, higher energy density and improved space efficiency.
LG Energy Solution said its forthcoming plant in Arizona will primarily handle the battery's manufacturing, and they will be shipped to Rivian’s facility in Normal, Illinois, for use in the R2 SUV model for the North American market. A rendering of LG Energy Solution's plant in Arizona / Courtesy of LG Energy Solution The company did not reveal the timing of delivery, citing confidentiality issues, but full-scale shipping is expected to come in early 2026 when the Arizona plant is set to launch its full operation, and the R2 is estimated to be delivered to the market at that time. “This large-scale order from Rivian for the 4695 battery marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment,” LG Energy Solution CEO Kim Dong-myung said.
The order is the latest in a series of deals that LG Energy Solution has clinched with its 46-millimeter-diameter battery series. Last month, the firm signed a 50.5 gigawatt-hour EV battery contract with a Mercedes-Benz subsidiary.
The 10-year supply order is believed to involve next-generation 46-millimeter cylindrical batteries. Following the deal, the company also entered a long-term agreement with Ford to provide battery cells and modules for commercial electric vehicles, with projected revenue from the deal exceeding 13 trillion won. In July, LG Energy Solution also secured a contract with Renault to supply lithium iron phosphate (LFP) batteries for electric vehicles.
This marked the company’s first large-scale EV LFP order, cracking into a market traditionally dominated by Chinese suppliers. “The supply agreement with Rivian is expected to further strengthen LG Energy Solution’s presence in the U.S.
market and accelerate its plans to actively respond to the Inflation Reduction Act by developing and supplying competitive battery cells in a timely manner,” an official at LG Energy Solution said..
