‘4695 Battery’ 8 Trillion KRW Scale 67GWh Supply
Employees at LG Energy Solution's Ochang plant are showcasing the cylindrical batteries developed by LG Energy Solution. Photo by LG Energy Solution
LG Energy Solution has once again secured a supply contract for cylindrical batteries. It will supply next-generation cylindrical 4695 (diameter 46mm · height 95mm) batteries on a large scale to Rivian, an emerging powerhouse in the U.S. electric vehicle market.
On the 8th, LG Energy Solution announced that it signed a 5-year supply contract for cylindrical batteries totaling 67GWh with its Arizona subsidiary in the U.S. Considering the recent battery cell price of around $95 per kWh, this is expected to be worth more than 8 trillion KRW. The start date of supply was not disclosed due to consultations with the client.
However, since battery cell prices have been repeatedly falling due to oversupply, the supply amount is likely to decrease from this estimate. These batteries are planned to be first installed in Rivian's newly launched electric SUV 'R2'.
Consecutive 46 Series Orders... LG Energy Solution Becoming the Leader in Cylindrical Batteries
The supplied product is the '4695' model among the next-generation cylindrical 46-series batteries. Last month, LG Energy Solution signed a cylindrical battery supply contract worth 50.5GWh, approximately 7 trillion KRW, with a Mercedes-Benz affiliate. LG Energy Solution plans to mass-produce cylindrical 4680 (diameter 46mm · length 80mm) batteries at its Ochang Energy Plant within this year and apply them to Tesla. The company is expanding 46-series supply from traditional automakers like Tesla and Mercedes-Benz to electric vehicle leaders and emerging EV companies such as Rivian.
The 46-series products are called 'game changers' that will reshape the future electric vehicle market. Compared to existing cylindrical batteries (2170), their energy capacity is improved by more than six times, and performance enhancements have been made in all aspects including density, output, and space efficiency. Above all, from the manufacturer's perspective, the reduction in process steps per unit of energy improves productivity in terms of cost and time, thereby increasing price competitiveness.
LG Energy Solution stated, "The next-generation 46-series cylindrical batteries are leading product and customer portfolio diversification at the forefront by securing consecutive large-scale supply contracts. In particular, the 46-series batteries supplied this time feature LG Energy Solution’s proprietary High-Ni NCMA Chemistry, which maximizes energy density while ensuring safety."
'Cylindrical Battery Production Hub' Arizona Plant in the U.S. Undergoing Steel Frame Work... Full Operation Scheduled for the Year After Next
Meanwhile, LG Energy Solution’s Arizona plant, the production hub for cylindrical batteries, has smoothly progressed in construction since groundbreaking this year. This plant is LG Energy Solution’s second standalone production facility in the U.S. and its first dedicated cylindrical battery plant. It will serve as a major supply base for Rivian. The foundation work has been completed, and steel frame work is nearing completion.
The Arizona plant aims for full operation in 2026. LG Energy Solution expects the Arizona plant, equipped with a state-of-the-art smart factory system, to become a key production base in North America during the 'golden age' of the future electric vehicle market.
LG Energy Solution has demonstrated its global production capabilities based on abundant experience and overwhelming technological leadership, achieving over 90% yield within a month of operation at the Ultium Cells second plant, a joint venture with GM in Tennessee, U.S., and the HLI Green Power joint venture with Hyundai Motor in Indonesia.
Kim Dong-myung, CEO of LG Energy Solution, said, "This supply contract is the result of recognition of our overwhelming technological superiority in the next-generation cylindrical battery field. Based on our advanced and stable supply capabilities, we will further differentiate customer value and accelerate market leadership."
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