As an American electric vehicle startup, Rivian approached sales of nearly 50,000 units in 2023. By the end of 2024, the company is expected to sell even more vehicles, which is impressive considering that its product lineup currently consists only of the R1S and R1T models.
Despite this, Rivian continues to struggle with profitability. This situation may change as the company eventually expands its product line through the introduction of smaller vehicle models, R3 and R2, with the latter seeking third-party assistance in battery production.
LG Energy Solution, formerly a prolific smartphone manufacturer, will supply the 4695 cylindrical batteries for Rivian's upcoming new vehicle platform.
Revolutionary Battery Architecture
Dubbed the 4695 series, the next generation of cylindrical batteries, expected to eventually replace the current 2170 model, has a diameter of 46 millimeters and a height of 95 millimeters.
These batteries possess six times the energy capacity, utilizing their larger size to achieve greater energy density, improved spatial efficiency, and enhanced safety features.
The 4695 cylindrical battery design will empower Rivian with a vision of extended range, durability, and efficiency for the R2 model and potential future vehicles. It will also assist the company in accomplishing its long-term objective of reducing the number of parts per vehicle, emphasizing efficiency.
This strategy will decrease production costs and pass the savings on to consumers, enabling them to acquire Rivian’s most cost-effective model to date.
This collaboration benefits both sides
This collaboration benefits both parties. The joint venture signifies that Korea-based LG Energy Solution will have a greater presence in the U.S. market.
"Given the dynamic nature of the current electric vehicle market, an increasing number of global automakers are showing a strong preference for a variety of battery types," stated CEO David Kim. "Rivian's large-scale order for the 4695 batteries marks a crucial milestone for LG Energy Solution in expanding our customer base in the cylindrical battery sector."
In the first year, the new batteries will be produced at LG's new facility in Queen Creek, Arizona, and then shipped to Rivian's factory in Normal, Illinois.
The supply agreement is expected to last five years, with both companies ensuring their commitment to the Inflation Reduction Act, which offers a $7,500 tax credit for electric vehicles featuring key components made in the USA.
Currently, Rivian has announced that the starting price for the 2026 R2 model will be $45,000. If the collaboration with Rivian successfully launches the R2 to the market, LG Energy Solution may potentially accommodate more automakers in the future.
