American EV manufacturer Rivian has partnered with South Korea’s LG Energy Solution for procurement of batteries which would be fitted on to its upcoming R2 electric SUV cars. As part of the contract, LG Energy Solutions will supply 4695 cylindrical batteries to Rivian under a five-year agreement.
In the first year, these batteries will be manufactured at LG’s standalone plant in Arizona before being shipped to Rivian’s facility in Normal, Illinois.
Both companies reaffirmed their commitment to the Inflation Reduction Act (IRA), which provides a $7,500 tax incentive for EVs with key components made in the US. The agreement with Rivian is expected to strengthen LG Energy Solution’s presence in the US, by providing competitive battery cells and expanding into new markets.
Aiming for affordability
The next-generation 4695 cylindrical battery, measuring 46mm in diameter and 95mm in height, offers long range and high safety. It has six times the energy storage capacity of the current 2170 cylindrical batteries. Its larger size allows for higher energy density, better space efficiency, and improved safety, drawing attention across the industry.
Rivian’s R2 series is aimed at a wider global market than the R1. The company’s partnership with LG Energy Solution is expected to play a key role in supporting R2’s design vision of long range, durability, and efficiency.
LG Energy Solution has been developing its cylindrical battery technology for the past 20 years, backed by extensive manufacturing experience and a wide range of patents.
“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. This large-scale order from Rivian for 4695 batteries marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment,” said David Kim, CEO of LG Energy Solution.
This battery also supports Rivian’s goal of reducing manufacturing costs, helping to make the R2 its most affordable model for the mass market. Rivian projects a 45% improvement in battery pack assembly efficiency for the R2 compared to the R1 platform. By using fewer parts and focusing on efficiency, Rivian aims to provide a more cost-effective battery solution.
R2 to compete with Tesla Model Y
Rivian recently opened pre-orders for the R2, with deliveries expected to start in the first half of 2026. Starting at $45,000, the R2 is positioned as Rivian’s first widely accessible EV, marking a milestone similar to Tesla’s ‘Model 3 moment’. In terms of price, it will compete with models like the Tesla Model Y and Hyundai Ioniq 5.
The R2 offers 0 to 60 mph acceleration in under 3 seconds and an estimated range of over 300 miles. It comes equipped with automated driving tech and unique features, like a rear window that folds down for an ‘open-air experience’.
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