The Rivian R2’s next-gen batteries will be made in the US by LG Energy

Rivian’s R2 vehicles volition beryllium powered by batteries made domestically successful the US by South Korea’s LG Energy Solution, the institution announced successful its 3rd 4th net report.

Rivian archetypal revealed the caller batteries backmost successful March erstwhile it announced the R2 arsenic its much affordable electrical SUV that would commencement astatine $45,000. (It besides announced the sportier R3 vehicle.) The compartment is called “4695” owed to its diameter of 46 millimeters and tallness of 95 millimeters — larger than Tesla’s 4680 cells.

The artillery packs that Rivian uses presently successful its R1T and R1S vehicles are assembled astatine its Normal, Ill. mill utilizing cells manufactured successful South Korea by Samsung SDI. Now, the cells volition beryllium produced successful the US to amended comply with taxation recognition requirements outlined by the Inflation Reduction Act. In a missive to shareholders, Rivian said the cells would beryllium manufactured during their archetypal twelvemonth astatine LG’s works successful Queen Creek, Az.

The next-gen artillery battalion volition beryllium lighter, little complex, and cheaper to nutrient than the existent batteries, Rivian said. The institution besides expects a “meaningful simplification successful dollar per kilowatt hr (kWh) astatine the battalion level erstwhile compared to the R1 platform.” And due to the fact that its larger than its R1 batteries, the caller packs volition incorporate less cells overall, which volition marque the manufacturing process much efficient. Rivian says it expects the assembly process to amended by 45 percent.

Since the transition of the IRA, automakers person been scrambling to displacement EV artillery manufacturing to the US to comply with rules requiring home accumulation successful bid to suffice for generous subsidies. And with Donald Trump coming backmost into office, they volition request to enactment adjacent faster successful bid to debar harsh tariffs connected imported goods that the incoming president has promised to enact.

LG Energy Solution makes EV batteries for a fig of bequest automakers too. The company’s associated task with General Motors received a $2.5 cardinal indebtedness from the Department of Energy successful 2022 to assistance conception a caller lithium-ion artillery manufacturing facility.

Rivian has said the R2 volition spell into accumulation during the archetypal fractional of 2026. But with Trump besides promising to destruct Joe Biden’s EV subsidies, the question remains whether struggling EV-only companies similar Rivian volition beryllium capable to enactment afloat amidst what’s expected to beryllium a much uncertain market.