South Korea's largest battery manufacturer, LG Energy Solutions (LGES), announced on Friday that it has reached an agreement with the American electric car manufacturer Rivian to supply electric car batteries.

According to the agreement, LG Energy Solutions will provide Rivian with advanced 4695 cylindrical batteries, totaling 67 gigawatt hours, over a period of five years.

The company did not disclose the detailed financial terms of the contract.

LG Energy Solutions stated that these batteries will be manufactured at the company's U.S. factory in Arizona and will be used for Rivian's R2 electric SUV.

Prior to the agreement with Rivian, this South Korean company also signed similar battery supply contracts with global auto manufacturers such as Mercedes-Benz and Ford.

LG Energy Solutions stated that the 4695 cylindrical batteries have larger capacity, higher energy efficiency, and greater safety, making them popular as demand for cylindrical batteries continues to rise.