LG Energy to supply 46 mm EV batteries to Rivian for 5 years
Sources told the Korea Economic Daily that the deal’s value is estimated to be USD 6.7 billion. The batteries, 46 mm in diameter, will be installed in the Rivian R2 SUV to debut in 2026.
LG Energy Solution will supply batteries to US EV manufacturer Rivian Automotive in a multibillion-dollar deal that will bolster the South Korean company’s presence in the high-performance battery market.
LG Energy said its Arizona unit had signed a deal with Rivian to provide cylindrical batteries of 67 GWh for five years. The batteries, 46 mm in diameter and 95 mm in length, will be installed in the Rivian R2 sport utility vehicle to debut in 2026, the South Korean battery producer said.
Sources told the Korea Economic Daily that the deal’s value is estimated to be USD 6.7 billion.
However, LG and Rivian have not disclosed the financial terms.
“We have inked a number of major supply deals with the next-generation 46-series cylindrical battery, accelerating the diversification of products and customers,” LG Energy said in a statement.
The 46 mm diameter cylindrical battery is said to increase energy density five times and output six times compared to the conventional 21 mm diameter cells.
LG Energy said the batteries for Rivian consist of nickel-rich nickel cobalt manganese aluminum (NCMA) materials to maximize energy density and secure safety.
“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,” said David Kim, CEO of LG Energy Solution. “This large-scale order from Rivian…marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment.”
LG Energy’s Arizona plant is dedicated to cylindrical batteries. The factory, which is under construction, is due to start commercial operations in 2026 with the aim of producing the 46 mm batteries, the Korea Economic Daily report says.
Last month, LG Energy signed agreements to supply battery cells and modules to Ford in Europe. In July, the company inked a multi-billion-dollar deal to supply lithium iron phosphate batteries to Renault Group’s EV unit Ampere.
Meanwhile, Rivian said it was on track to turn a gross profit in the fourth quarter on the back of cost cuts and a sharp rise in sales of green car credits, despite a parts shortage disrupting production and weak EV demand, Reuters reports. The company also expects to report an annual gross profit in 2025.
