The Rivian R2’s next-gen batteries can be made within the US by LG Power

Rivian’s R2 autos can be powered by batteries made domestically within the US by South Korea’s LG Power Resolution, 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 inexpensive electrical SUV that may begin at $45,000. (It additionally introduced the sportier R3 car.) The cell known as “4695” attributable to its diameter of 46 millimeters and top 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 higher adjust to tax credit score necessities outlined by the Inflation Discount Act. In a letter to shareholders, Rivian stated the cells could be manufactured throughout their first yr at LG’s plant in Queen Creek, Az.

The subsequent-gen battery pack can be lighter, much less complicated, and cheaper to supply than the present batteries, Rivian stated. 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 comprise 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 purpose to qualify for beneficiant subsidies. And with Donald Trump coming again into workplace, they might want to work even quicker with a purpose to keep away from harsh tariffs on imported items that the incoming president has promised to enact.

Rivian has stated the R2 will go into manufacturing through the first half of 2026. However with Trump additionally promising to eradicate Joe Biden’s EV subsidies, the query stays whether or not struggling EV-only firms like Rivian will have the ability to keep afloat amidst what’s anticipated to be a extra unsure market.