Rivian R2 EV’s new LG battery boosts storage capacity sixfold

By Nick Godt Published November 8, 2024

Rivian R2 — Rivian

The Rivian R2, the EV maker’s much-anticipated affordable electric SUV, will be powered by U.S.-made batteries promising to store six times as much energy as those currently used.

South Korea’s LG Energy Solutions announced it will be supplying LG’s 4695 cylindrical batteries to Rivian as part of a five-year agreement.

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Within the first year of production, the batteries will be manufactured at LG’s standalone plant in Arizona before being delivered to Rivian’s Normal, Illinois, plant for use in the R2 model, the company said in a statement. Both LG and Rivian reaffirmed their commitment to the Biden administration’s Inflation Reduction Act (IRA). Under the IRA, EVs whose key components are made in the U.S. are eligible for a $7,500 tax incentive upon purchase or signing of a lease agreement.

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The larger size of LG’s 4695 cylindrical battery promises to offer both long range and a high level of safety, while featuring six times the capacity of existing 2170 cylindrical batteries, LG says.

The LG battery also aligns well with Rivian’s plans to reduce its manufacturing costs, and will help keep the R2 on track to be the EV maker’s most affordable mass-market model. Rivian said it expects the battery pack assembly processing to improve by approximately 45% compared to the R1’s platform.

Earlier this year, Rivian made the R2 available for preorders with scheduled deliveries due to start in the first half of 2026. With a starting price of $45,000, the R2 is being promoted by Rivian as its first truly accessible EV model, comparable to Tesla’s “Model 3 moment”. Pricewise, however, it’s competing with the likes of the Tesla Model Y and the Hyundai Ioniq 5.

The R2 promises acceleration of 0 to 60 mph in under 3 seconds and an estimated range of over 300 miles. It’s packed with technology allowing for automated driving and also carries uncommon features, such as a rear window that folds down to provide an “open-air experience”.

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Freelance reporter

Nick Godt has covered global business news on three continents for over 25 years.

Cars

EV sales surge could continue as Trump delays ending federal rebates, report says

Second-Gen Rivian R1S on a road

A surge in sales of electric vehicles in the final months of last year could continue well into 2025, as consumers continue to take advantage of federal tax incentives while they last, according to a report by the Associated Press.
On the day of his inauguration, President Donald Trump signed an executive order titled “Unleashing American Energy”, which says the government is “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.”
During his campaign, Trump’s team said it was planning to end the Biden administration’s $7,500 tax credit on the purchase or lease of an EV, although it did not provide a timeline for doing so.
Americans rushed to take advantage of the incentive, helping fuel a surge of more than 15% in EV sales in the fourth quarter, according to Cox Automotive.
Recent surveys show that incentives have played a major role in fueling EV sales over the past few years, and that a majority of Americans are in favor of government incentives to help with the purchase of an EV.
Meanwhile, the wording in Trump’s executive order, which says his administration is still 'considering' its options, leaves room for ambiguity about the timing of its application.
“Temporarily, sales of EVs could skyrocket as car-buyers rush to take advantage of existing tax credits,” the report by the Associated Press says.
In order to repeal the EV tax credit, the Trump administration will need to obtain the approval of congress. The process will likely take place as part of broader negotiations on extending Trump’s first-term tax cuts, which are due to expire near the end of 2025.
It’s also not entirely clear if the Trump administration will seek to end the whole of the $7,500 EV tax incentive. In order to obtain the incentive for the purchase of an EV, restrictions apply for high-income households and for EVs with non-U.S. made batteries. But those restrictions don’t apply to leasing an EV.
According to Cox Automotive, members of the Trump administration are particularly keen on ending “this leasing loophole, which was created partly to appease Korean and Japanese automakers, who have invested billions in U.S. EV manufacturing.”
Ending rebates and other subsidies for EVs is also likely to meet challenges, be they legal or political, from different actors.
The Zero Emission Transportation Association (ZETA), a trade group whose members include the likes of Tesla, Waymo, Rivian, and Uber, has come out in support of incentives for both the production and the sale of EVs.
ZETA says the incentives for both EV and battery-makers have led to enormous investments and job gains in Republican-dominated states like Ohio, Kentucky, Michigan, and Georgia.

Cars

Tesla Model Y Juniper vs Rivian R1S: Can Tesla’s newest take out a much more expensive vehicle?

Tesla Model Y 2025.

Tesla and Rivian actually have a lot in common. Both are relatively new companies in the grand scheme of things, at least compared to the legacy automakers that are now switching to EVs, but their actual vehicles are pretty different. The Tesla Model Y is the most popular electric vehicle in America, serving as a high-tech crossover for those interested in buying a Tesla. The Rivian R1S is Rivian's electric SUV, obviously boasting a larger body, but also putting tech first.

On top of the Tesla Model Y being the most popular EV right now, it's also in the midst of getting a major refresh in the form of the Model Y Juniper. We're still early on in the rollout of that refresh, though. While Tesla has released the Model Y Juniper in its base form in China, the version of the vehicle being sold in the US right now is the so-called Launch Edition New Model Y, which is a high-performance version of the Model Y Juniper that comes with a high price tag. For this comparison, we'll use the specs from the both the entry-level Model Y Juniper being sold in China, and the launch edition New Model Y being sold in the U.S. Keep in mind, however, that until the Model Y Juniper gets a wider U.S. release, only the previous-generation Model Y is being sold alongside the Launch Edition New Model Y

Cars

Tesla Model Y Juniper vs Kia EV9: Can the new Model Y beat a large SUV?

White Tesla Model Y Juniper at a Supercharger

America's most popular electric vehicle, the Tesla Model Y, is getting a major refresh. Tesla already launched the Tesla Model Y Juniper in China, but now it's bringing the vehicle to the US.

Of course, the new Model Y has to go up against a host of competitive electric vehicles, some of which are larger, some faster, and some even cheaper. The Kia EV9 has been hailed for being one of the few full-size electric SUVs that offers a high-quality driving experience without completely breaking the bank.

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