LG Energy Solution Signs Battery Supply Agreement with Rivian

SEOUL (Reuters) – South Korea's LG Energy Solution announced on Friday that its subsidiary, LG Energy Solution Arizona, has signed a battery supply agreement with U.S.-based automotive manufacturer Rivian (NASDAQ:RIVN).

Agreement Details

Under the agreement, LGES, known for supplying Tesla (NASDAQ:TSLA), General Motors (NYSE:GM), and Hyundai Motor (OTC:HYMTF), will provide Rivian with its advanced 4695 cylindrical batteries for over five years, totaling 67 GWh.

Manufacturing Location

The batteries will be produced at LG's standalone battery plant in Arizona and will be utilized in Rivian's R2 model for the North American market.

Industry Trend

Automakers, including Mercedes, are following Tesla's lead by utilizing larger cylindrical cells in their electric vehicles to enhance driving range while minimizing the number of cells required for equivalent battery pack capacity.