This might be the most proactive move to deal with tariffs that we’ve heard of
- Rivian reportedly started buying large quantities of batteries before the election to stockpile.
- This battery stockpile provides Rivian with time to manage potential tariff-induced price hikes.
- It also plans to shift to 4695-format cells, produced locally in Arizona to comply with regulations.
Automakers across the industry are scrambling to navigate Donald Trump’s tariffs, and some are getting particularly creative in their strategies. Rivian, for example, has apparently taken a refreshingly proactive stance. Sources with knowledge of the situation say the automaker is sitting on a stockpile of batteries that it’s been buying up since before the election even happened.
According to a Bloomberg report, Rivian made a savvy move by locking down a stash of lithium iron phosphate (LFP) cells from China’s Gotion High-Tech Co. well before the election, with the goal of powering its Amazon-bound delivery vans. After the political dust settled, the company then teamed up with Samsung SDI to import a sizable batch of battery cells from South Korea, hoping this would keep production rolling for its R1T pickup and R1S SUV models.
Read: Trump Eases Auto Tariffs With 85% Rule While Buyers Brace For Sticker Shock
The strategic move serves as a buffer against potential pricing pressures induced by Trump’s new tariffs. While recent revisions to the tariff plan offer some relief, they still pose significant challenges for automakers relying on international supply chains. That can heavily impact companies like Rivian who need to import batteries to make every vehicle in their lineup. Notably, Samsung SDI said a week ago that the tariff war would make it more expensive to build EVs.
For now, Rivian has bought itself a little more breathing room before it has to worry about raising prices. In the meantime, it’s also gearing up for the launch of its smaller R2 SUV. With this new vehicle, the company plans to switch to 4695-format cells from LG Energy Solution. The initial production will take place in Korea, but Rivian has plans to move operations to LG’s new Arizona facility in Queen Creek. Even without the tariff issues, that move helps Rivian better align with the Inflation Reduction Act’s requirements.
Whether this is a stroke of logistics genius or just plain survival instinct depends on how you read the political winds. Either way, Rivian’s battery strategy gives it a short-term cushion while it scrambles to localize its supply chain before the tariffs squeeze even tighter. Of all the different strategies we’ve seen automakers employ, this is the first time one has proactively bought up supplies to this degree.
In the end, Rivian’s proactive approach might just be the thing that keeps it on track, at least until the tariff storm blows over.
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