SEOUL Seoul: South Korea's leading battery maker LG Energy Solution (LGES) on Friday said it has struck a deal to supply electric vehicle batteries to US automotive maker Rivian. According to the company, under the deal, LGES Rivian will provide its advanced 4695 cylindrical batteries, a total of 67 gigawatt hours of batteries, for more than five years.According to the Yonhap news agency report, the company did not disclose detailed financial terms of the contract.
LGES said the batteries will be manufactured at the company's US plant in Arizona and will be used in Rivian's R2 sport utility vehicles. The deal with Rivian follows the Korean company's similar deals with global carmakers including Mercedes-Benz and Ford. This follows battery-supply contracts for Rs. LGES said that amid the increasing demand for cylindrical batteries, its 4695 cylindrical battery cells are gaining popularity due to their large capacity, high energy efficiency and enhanced safety features.
“Due to the dynamic nature of the current EV market, a growing number of global automakers are demonstrating a strong preference for battery form factor diversity,” said David Kim, CEO of LG Energy Solutions. “This large-scale order from Rivian for 4695 batteries is an important milestone for LG Energy Solutions in expanding its customer base in the cylindrical battery segment.”
Meanwhile, South Korea's leading mobile carrier LG Uplus said Friday its third-quarter net profit was 13.9 percent lower than a year earlier due to rising operating costs. Net profit for the three months ended September stood at 134.9 billion won ($97.3 million), compared with 156.7 billion won a year earlier, the company said in a regulatory filing. Its operating profit declined 3.2 percent year-on-year to 246 billion won, while sales rose 6.1 percent to 3.8 trillion won. Despite higher sales, the company said its net profit declined due to the cost of installing a new computer network.
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