LG Energy Solution to supply cylindrical batteries to EV manufacturer Rivian

Home > Business > Industry

LG Energy Solution to supply cylindrical batteries to EV manufacturer Rivian

Published: 08 Nov. 2024, 10:40 Updated: 10 Nov. 2024, 15:25

JIN EUN-SOO
[email protected]

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

LG Energy Solution's 4695 cylindrical batteries [LG ENERGY SOLUTION]

LG Energy Solution announced Friday that it has signed a deal to supply its next-generation 4695 cylindrical batteries to U.S. EV manufacturer Rivian.

Rivian, headquartered in Irvine, California, was founded in 2009 and is dedicated to manufacturing EVs. It sold a little more than 50,000 cars globally last year.

Under the agreement, LG Energy Solution’s U.S. subsidiary in Arizona will deliver 67 gigawatt-hours of 4695 cylindrical batteries over the next five years. The first batch of these batteries will be used in Rivian’s upcoming electric SUV, the R2.

The value of the deal hasn't been disclosed, but is estimated to reach 8 trillion won ($5.78 billion), based on the price of battery cells as disclosed by researcher BloombergNEF.

Production will take place at LG Energy Solution's Arizona factory, its second stand-alone facility in the United States and its first location dedicated to manufacturing cylindrical batteries. The plant is set to begin full operations in 2026.

“LG Energy Solution is advancing the diversification of its client portfolio and product lineup through large-scale deals for our next-generation 46-series cylindrical batteries,” the company said in a statement Friday.

Cylindrical batteries were primarily used in consumer electronics before Tesla adapted and popularized them for use in EVs. The Korean battery maker's product lineup also focused more on pouch-type batteries.

Cylindrical batteries are known to be more cost-efficient and scalable, while pouch types are more flexible in design.

Energy density for the 46-series has been improved six times over its previous cylindrical 2170 battery and has been updated in output, space efficiency and more, the battery maker said.

"The latest supply deal is the result of the technological supremacy LG Energy Solution has in next-generation cylindrical batteries," said CEO Kim Dong-myung. "We will accelerate our market leadership by enhancing customer value through our proactive and stable supply capabilities."

LG Energy Solution also supplies batteries to major global automakers, including Tesla, General Motors and Hyundai Motor.

BY JIN EUN-SOO [[email protected]]