LG Energy Solution scores major battery supply deal with US automaker

LG Energy Solution (LGES), a South Korean global manufacturer of lithium-ion batteries for electric vehicles (EVs),  has signed a significant supply agreement with US automotive manufacturer Rivian, committing to deliver 67GWh of its advanced 4695 cylindrical batteries over a five-year period. The next-generation 4695 battery, with a diameter of 46mm and height of 95mm, offers over six times the capacity of the previous 2170 model, providing enhanced energy density, space efficiency, and safety.

The batteries will initially be produced at LGES’s new facility in Arizona and delivered to Rivian’s Illinois plant for use in the R2 model targeting the North American market. This deal marks a strategic move for LGES as it seeks to expand its footprint in the US EV market and respond to the Inflation Reduction Act (IRA) by supplying competitive, locally-manufactured battery cells.

CEO David Kim noted the growing demand for diverse battery formats in the evolving EV market, noting that the Rivian partnership highlights LGES’s lead in cylindrical battery technology. The agreement is expected to bolster LGES’s position in the US,  leveraging its two decades of experience and extensive patent portfolio in cylindrical batteries.