Rivian’s R2 autos can be powered by batteries made domestically within the US by South Korea’s LG Power Answer, the corporate introduced in its third quarter earnings report.
Rivian first revealed the brand new batteries again in March when it introduced the R2 as its extra reasonably priced electrical SUV that might begin at $45,000. (It additionally introduced the sportier R3 automobile.) The cell is known as “4695” attributable to its diameter of 46 millimeters and peak of 95 millimeters — bigger than Tesla’s 4680 cells.
The battery packs that Rivian makes use of presently in its R1T and R1S autos are assembled at its Regular, Unwell. manufacturing unit utilizing cells manufactured in South Korea by Samsung SDI. Now, the cells can be produced within the US to raised adjust to tax credit score necessities outlined by the Inflation Discount Act. In a letter to shareholders, Rivian mentioned the cells could be manufactured throughout their first 12 months at LG’s plant in Queen Creek, Az.
The subsequent-gen battery pack can be lighter, much less complicated, and cheaper to provide than the present batteries, Rivian mentioned. The corporate additionally expects a “significant discount in greenback per kilowatt hour (kWh) on the pack stage when in comparison with the R1 platform.” And since its bigger than its R1 batteries, the brand new packs will include fewer cells total, which is able to make the manufacturing course of extra environment friendly. Rivian says it expects the meeting course of to enhance by 45 p.c.
For the reason that passage of the IRA, automakers have been scrambling to shift EV battery manufacturing to the US to adjust to guidelines requiring home manufacturing with a view to qualify for beneficiant subsidies. And with Donald Trump coming again into workplace, they might want to work even sooner with a view to keep away from harsh tariffs on imported items that the incoming president has promised to enact.
Rivian has mentioned the R2 will go into manufacturing throughout the first half of 2026. However with Trump additionally promising to remove Joe Biden’s EV subsidies, the query stays whether or not struggling EV-only corporations like Rivian will be capable to keep afloat amidst what’s anticipated to be a extra unsure market.
