Major car brand strikes deal to integrate highly efficient batteries into next-generation cars: ‘Attracting the attention of the entire industry’

California-headquartered Rivian is tapping South Korean battery expertise for its yet-to-be-released R2 electric vehicle, a five-seat SUV expected to debut in 2026.

LG Energy Solution makes larger cylindrical cells that InsideEV says should provide six times the storage capacity of some existing packs.

“Its larger size enables higher energy density, improved space efficiency and enhanced security, attracting the attention of the entire industry,” according to a statement from LG.

Manufacturing will take place in the United States. The report adds that LG will manufacture the 4695 batteries at its Arizona factory. The numbers refer to the dimensions of the pack in millimeters. From there, they will be shipped to the Rivian factory in Illinois.

The news comes at a pivotal time for Rivian and electric vehicles in general. Nearly a fifth of vehicles sold last year were battery-powered. Sales in the United States also continue to grow. About 346,309 electric vehicles were sold in the third quarter of 2024, an increase of 5% from the second quarter, and electric vehicle sales reached a record market share of 8.9%, according to the International Electric Vehicle Agency. energy and Cox Automotive.

At the same time, Rivian’s $874 million in third-quarter revenue fell short of expectations of $992 million. The Los Angeles Times reported that the automaker blamed the performance on a production disruption and a difficult consumer market.

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, according to the Times. The credit is made possible through the Inflation Reduction Act.

For its part, Rivian lists other models in its R series starting at around $70,000, with leasing options available. The R2 is estimated to have a range of 300 miles 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 feature Samsung batteries as well as packs from an “undisclosed supplier.” They have different chemical types, including lithium iron phosphate, all according to the InsideEVs story.

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In addition to the battery changes, InsideEVs noted that hatchbacks were being added to the Rivian lineup.

Innovations are important not only for electric vehicle enthusiasts, but also for the planet. Each electric vehicle that replaces a gas burner avoids thousands of pounds of heat-trapping air pollution per year. This is true even in places where fossil fuels provide most of the energy needed to charge batteries, 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.

Additionally, LG officials appear optimistic about the electric vehicle market and that their batteries can play a role in the sector’s continued growth.

“Due to the dynamic nature of today’s electric vehicle market, a growing number of global automakers are demonstrating a strong preference for a diverse range of battery form factors,” said CEO David Kim. “This large-scale order from Rivian for…batteries marks a key milestone for LG Energy Solution in expanding its customer base.”

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