- LG Energy Solution has signed a five-year battery supply agreement with U.S. electric vehicle manufacturer Rivian.
- LG Energy Solution will supply Rivian with its advanced 4695 cylindrical cells totalling 67 GWh.
What happened
LG Energy Solution has signed a five-year agreement with Rivian to supply batteries for electric vehicles. This deal will cover Rivian’s electric pickup trucks and SUVs, aiming to support Rivian’s expansion and production goals. The agreement is significant for both companies as it enhances Rivian’s battery supply security while strengthening LG Energy Solution’s position in the EV market.
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Why it is important
This battery supply deal between LG Energy Solution and Rivian is crucial for Rivian as an electric vehicle startup. For young companies, securing reliable access to key components like batteries is challenging due to intense competition. This agreement ensures Rivian has a steady supply for the next five years, enabling it to scale production without disruptions. It also helps Rivian attract investors by reducing supply chain risks, positioning it to compete more effectively with established automakers like Tesla. The partnership underscores Rivian’s commitment to growth and solidifies its place in the EV market.
