California-headquartered Rivian is tapping South Korean battery expertise for its yet-to-be-released R2 electric vehicle, a five-seater SUV set to debut in 2026.
LG Energy Solution is making larger cylindrical cells that InsideEVs reported are expected to provide six times the storage capacity of some existing packs.
"Its larger size enables higher energy density, improved space efficiency, and enhanced safety, which is attracting industry-wide attention," per an LG statement.
The manufacturing will all take place stateside. The report added that LG will make the 4695 batteries at its Arizona facility. The numbers are in reference to the pack's dimensions in millimeters. From there, they will be shipped to Rivian's plant in Illinois.
The news comes at a pivotal time for Rivian and EVs generally. Almost one-fifth of vehicles sold last year were battery-powered. Sales stateside continue to grow, as well. About 346,309 EVs were sold in the third quarter of 2024, which was a 5% increase from the second quarter, and EV sales reached a record market share of 8.9%, all according to the International Energy Agency and Cox Automotive.
At the same time, Rivian's $874 million in Q3 revenue fell short of a $992 million expectation. The Los Angeles Times reported that the automaker blamed a production disruption and a challenging consumer market for the performance.
For now, tax breaks of up to $7,500 are available to help offset the cost of certain models. But the incentives face an uncertain future, as President-elect Donald Trump could end the program, per the Times. The credit is made possible through the Inflation Reduction Act.
For its part, Rivian lists other models in its R series as starting around $70,000, with leasing options available. The R2 is estimated to have a 300-mile range and can go from zero to 60 in just three seconds. Rivian lists its starting price at $45,000, which is competitive with Tesla's Model Y and other brands.
Some other Rivian models sport Samsung batteries as well as packs from an "undisclosed supplier." They have varying chemistry types, including lithium-iron phosphate, all per the InsideEVs story.
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In addition to battery changes, InsideEVs noted that hatchbacks are being added to the Rivian lineup.
The innovations are important not only to EV enthusiasts but for the planet, as well. Each EV that replaces a gas-burner prevents thousands of pounds of air heat-trapping pollution a year. That's true even in locations where fossil fuels provide most of the juice to charge the batteries, all according to the U.S. Department of Energy. Air pollution is a known lung irritant and poses other health risks, as noted by the American Lung Association.
What's more, LG officials seem optimistic about the EV market and that their batteries can play a role in continued growth for the sector.
"Due to the dynamic nature of the current EV market, an increasing number of global automakers are demonstrating a strong preference for a diverse range of battery form factors," CEO David Kim said. "This large-scale order from Rivian for … batteries marks a key milestone for LG Energy Solution in expanding its client base."
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