The Rivian R2, the EV makers 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 Koreas LG Energy Solutions announced it will be supplying LGs 4695 cylindrical batteries to Rivian as part of a five-year agreement.

Recommended Videos Within the first year of production, the batteries will be manufactured at LGs stand-alone plant in Arizona to be delivered to Rivians 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 administrations 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.

Related The larger size of LGs 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 Rivians plans to reduce its manufacturing costs, hence keeping the R2 on track to be the EV makers most affordable mass-market model. Rivian said it expects the battery pack assembly processing to improve by approximately 45% compared to the R1s platform.

Earlier this year, Rivian made the R2 available for pre-orders 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 Teslas Model 3 moment. Price-wise, however, its competing with the likes of the Tesla Model Y and the Hyundai Ioniq 5.

The R2 promises acceleration of 0-60 mph under 3 seconds and an estimated range of over 300 miles. Its 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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