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Battery manufacturer LG Energy Solution just announced that its Arizona subsidiary has signed a long-term supply agreement with US automaker Rivian for 4695 cylindrical batteries. The cells will be produced at LG Energy Solution Arizona’s new standalone US facility beginning next year and will power Rivian’s upcoming R2 BEVs.

LG Energy Solution (LGES) is a spinoff entity of LG Chem specializing in battery development and manufacturing. In the four short years since the entity was founded, the Korean company has established partnerships and supply agreements with OEMs worldwide and is currently one of the leaders in its respective market behind long-time frontrunner CATL.

When the Biden administration introduced the Inflation Reduction Act, which included tax incentives for BEVs and their batteries assembled on US soil, LGES was one the most popular battery manufacturers OEMs reached out to for joint ventures to set up localized cell manufacturing in North America.

Since then, we’ve seen facility plans announced between LGES and automakers like Hyundai Motor Group, Stellantis, Honda, and Ford, which recently decided to bring its operations stateside over from Europe. Toyota also has a supply agreement in place with LG Energy Solution.

In 2022, we covered the news that LG Energy Solution was investing $450 million to produce 4680 battery cells, a format pioneered by Tesla. The company has since developed taller, higher-capacity cells called 4695.

Today, the company announced a new deal for those 4695 cylindrical batteries, which will be produced in Arizona and delivered to Rivian for its R2 models.

Rivian batteries
A rending of LG Energy Solution’s Stand-Alone Battery Manufacturing Complex Project in Arizona / Source: LG Energy Solution

Rivian R2 will be powered by LG Energy Solution batteries

LG Energy Solution shared details of its latest supply agreement this afternoon. The company has signed on to provide Rivian with its advanced 4695 cylindrical batteries for over five years, delivering a total energy capacity of 67 GWh during that time.

The “4695” nomenclature refers to the dimensions of the battery cells, which have a diameter of 46mm and a height of 95mm. LG Energy Solution explained that its 20 years of research and development in cylindrical batteries have gone into its next-generation 4695 cells for Rivian.

The battery specialist states that its larger cells will offer OEMs long-range and high safety while delivering over six times the capacity of the existing 2170 cylindrical cells popular in BEV battery modules today. LG Energy Solution CEO David Kim spoke about the company’s 4695 batteries and its robust supply agreement with Rivian:

Due to the dynamic nature of the current EV market, an increasing number of global automakers are demonstrating a strong preference for a diverse range of battery form factors. This large-scale order from Rivian for 4695 batteries marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment.

Today, we also learned that the batteries for Rivian will eventually be manufactured at its pending facility in Arizona within the first year of production, then delivered to Rivian’s assembly plant in Normal, Illinois, where they will be implemented in R2 models sold in the North American market. 

Construction of LGES’ Arizona facility is underway and expected to be completed and begin full-scale production in less than two years from now.

The Rivian R2 was unveiled this past March to much fanfare, and well over 100,000 pre-orders have since been placed. It will be assembled at the Normal, IL, facility and may eventually move to the American Automaker’s second manufacturing plant, which remains under construction in Georgia.

During its reveal, Rivian shared that it expects the R2 BEV to reach the market in the first half of 2026. If that timeline holds, it should be right around when LG Energy Solution begins producing batteries for those Rivian models in Arizona.

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Podcast: China reaches EV tipping point, Tesla retreats, some slack with tax credit, and more

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Podcast: China reaches EV tipping point, Tesla retreats, some slack with tax credit, and more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss China reaching the EV tipping point, Tesla’s retreat in Europe, EV buyers receiving some tax credit relief, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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Cadillac is the luxury EV leader, but will it last without the $7,500 tax credit?

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Cadillac is the luxury EV leader, but will it last without the ,500 tax credit?

Cadillac is back and selling a surprising number of electric vehicles in the US. With a full lineup of electric SUVs, Cadillac now claims to be the leading luxury EV brand in the US. Can it keep it up even after the $7,500 federal tax credit expires?

After launching seven new electric vehicles this year, GM claimed that Cadillac became the leading luxury EV brand by market share. However, that doesn’t include Tesla due to its “pricing structure.”

Cadillac is coming off its best first-half sales since 2008, selling more vehicles across all 50 states. Nearly one in four Cadillacs sold in the US this year were EVs.

GM’s luxury brand is now selling more electric vehicles than some of its biggest rivals, including Porsche, Audi, Mercedes-Benz, Rivian, and Volvo.

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According to the latest data from Cox Automotive, Cadillac sold over 11,700 EVs in Q2, up 62% compared to last year. Through the first six months of the year, it has sold nearly 20,000 electric vehicles. In comparison, Porsche has sold almost 7,200 EVs in the US, Mercedes sold about 8,000, and Audi has sold just over 11,500.

Cadillac-EV-tax-credit
2026 Cadillac Optiq EV (Source: Cadillac)

With an electric SUV in nearly every segment, including the entry-level Optiq, a midsize Lyriq, a three-row Vistiq, and the even larger Escalade IQ and IQL models, Cadillac is seeing an influx of buyers from other brands.

Cadillac prepares for the EV tax credit to expire

Around 70% of Cadillac’s EV buyers are from other brands, according to GM, and about 10% are former Tesla drivers. With big policy changes coming under the Trump administration, Cadillac, like the entire industry, will likely face some hurdles.

The administration already raised tariffs on imported vehicles and other auto parts, and at the end of September, the $7,500 federal EV tax credit is set to expire.

Cadillac-EV-tax-credit
2026 Cadillac Vistiq electric SUV (Source: GM)

In response to the changes, many automakers are shifting back to hybrid and gas-powered vehicles. Cadillac is no exception.

“They’ll have to have both for a number of years now,” according to Sam Fiorani, the vice president of AutoForecast Solutions. Fiorani explained (via The New York Times) that “The gas-powered vehicles make the money, and the EVs bring them a new market.”

Cadillac-EV-tax-credit
Cadillac ESCALADE IQL electric SUV (Source: Cadillac)

Cadillac was initially expected to have an all-EV lineup by the end of the decade. Thanks to the policy changes, Cadillac could continue offering hybrid and ICE vehicles for several more years.

Fiorani said that although GM planned to retire the gas-powered Escalade, it’s now due for a refresh that will be sold “well into the next decade.”

Cadillac-EV-tax-credit
Cadillac LYRIQ luxury trim (Source: Cadillac)

Earlier this year, Cadillac’s global vice president, John Roth, said during a media briefing that the company was in a better position than most with the policy changes.

All Cadillac vehicles are built in the US, except the Optiq, which is built in Mexico. According to Roth, the policy changes will have “very limited impact, if you will, on the Cadillac brand.” If anything, Roth said, it could be an opportunity for the luxury automaker.

If you’re looking to get ahead of the $7,500 EV tax credit expiration, we can help you get started. Check out our links below to find Cadillac’s electric SUVs in your area.

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Australia Post begins largest electric van pilot in its history

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Australia Post begins largest electric van pilot in its history

Australia Post is advancing its commitment to achieve Net Zero emissions across its operations by 2050 with the introduction of 36 new Mercedes-Benz eVito electric vans, expanding its existing fleet of over 5,000 EVs already in active service.

With an efficient 60 kWh battery and 85 kW (about 115 hp) electric motor, Mercedes’ eVito electric van is ideally suited to the sort of stop-and-go work of a delivery vehicle. What’s more the company’s factory upfit program, Merceds-Benz Vans Courier Solutions, makes it easier than ever for delivery and contractor fleets to spec out their vans exactly the way they need them.

And, even though the eVito’s 60 kWh battery is rated to “just” 261 km (162 miles), the sort of low-speed, high-regen duty cycle Australia Post is going to be putting it through should mean drivers see much better real world range than that — which is precisely the sort of information this 36 van pilot is meant to uncover.

“This is our largest electric van trial to date,” explains Australia Post Chief Sustainability Officer, Richard Pittard. “It’s a meaningful step forward as we continue building a modern, sustainable delivery network that meets the evolving needs of our customers while reducing our environmental impact.”

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Australia Post currently operates more than 3,600 three-wheeled electric delivery vehicles (EDVs), 1,500 e-bikes, nearly 200 UBCO DUTY electric motorcycles, and several Mitsubishi eFUSO electric box vans at its larger logistics centers.

The new eVito vans, once deployed at scale, will operate primarily in highly populated metro areas, where their positive impact on local air quality will be felt by the greatest number of people, and their respiratory health, as well.

Electrek’s Take


Mercedes eVito; via Australia Post.

This kind of deployment should be exciting to EV enthusiasts for a number of tried-and-true reasons, but this one is particularly exciting to Americans because we have an Administration actively pretending that electric postal vehicles aren’t ready for prime time. The success of programs like this one from Australia Post are just more egg in the face of these anti-EV clowns, and few things make me happier.

You can check out the official Mercedes-Benz Vans Australia eVito specs and measurements in the detailed brochure, below, then scroll on down to the comments and let us know what you think of MB’s baby Sprinter.

Mercedes eVito Specs


SOURCE | IMAGES: Australia Post.


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