LG Energy Signs Deal to Supply Rivian Batteries

LG Energy Solution has entered a five-year agreement to supply Rivian with 67 GWh of advanced 4695 cylindrical batteries for its R2 model, which will be manufactured at LG's Arizona plant. This partnership aligns with the Inflation Reduction Act's requirements for domestic battery production, enabling Rivian to benefit from tax incentives. The 4695 cells, named for their dimensions (46mm x 95mm), offer high energy density, improved safety, and greater efficiency compared to previous models, supporting Rivian's aim for a more cost-effective and lighter battery pack. This agreement is significant for LG Energy Solution's expansion and leadership in the U.S. market, as the company also collaborates with major automakers like Hyundai, Ford, and Toyota. Rivian's R2 model, priced at $45,000, is expected to bolster the company's financial sustainability by targeting the mass market. Production of these batteries is planned to start in 2026, with potential future shifts to a new Georgia plant.