Against the backdrop of the U.S. government’s much-maligned tariff situation, Rivian Automotive has quietly built itself a small cushion, and kept production of both its R1T pickup and its R1S SUV in the short term, after stockpiling a reserve of electric-vehicle batteries ahead of last year’s U.S. election last November.
Rivian
- Founded
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June 2009 (as Mainstream Motors)
- Founder
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R.J. Scaringe
- Headquarters
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Irvine, California, USA
- Owned By
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Publicly Traded
- Current CEO
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R.J. Scaringe
Rivian Was Preparing For Anything Back In 2024
According to a recent report by Bloomberg, based on feedback from insiders “familiar with the matter,” the all-electric automaker secured a supply of lithium iron phosphate cells, for use in its EV batteries, from China’s Gotion High-Tech Co. late last year. On top of that, Rivian also worked closely with its cell supplier, Samsung SDI, to move large quantities of its battery inventory from South Korea to its facilities in the U.S. earlier this year.
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These proactive moves have seemingly allowed Rivian, which relies on battery technology for every vehicle it currently produces in the U.S., to keep production of all-electric models running smoothly, at least for the time being.
Where These Stockpiled Batteries Will Be Used
It is understood that most of the battery cells sourced from Gotion will be used primarily for the commercial delivery vans used by the Amazon fleet, and which are assembled at Rivian’s Illinois plant in Chicago. Bloomberg’s insiders explained that payment for the cells was made up front, with the units stockpiled being held for later use (Gotion will maintain a separate inventory in the U.S.). Rivian’s supply from Samsung, meanwhile, will go towards production of both the R1T and the R1S.
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Longer-term, Rivian is also gearing up for production of its new, compact R2 SUV, the larger 4695-format battery cells for which will be sourced from LG Energy Solution. Plans are for the R2 to be built out of a new facility in Arizona, though initial production will start in South Korea.
Why This Move Is Important For Rivian
Stockpiling battery reserves mean the California-based EV maker not only ensures supply continuity but also undercut the Trump administration’s 25-percent tariff on non-U.S.-made vehicles and auto parts by as much as three or four months. Such a move significantly reduces costs and complications during a tumultuous political period in the process, as the EV industry is heavily dependent on battery imports from China and Korea.
CarBuzz, its writers, editors, and owners have no affiliation with any political entity or party. The CarBuzz team comprises members with a variety of differing political and social views. This article does not support either side of the current political landscape and serves only to collate the various developments therein to discuss their potential ramifications on the auto industry.
Source: Bloomberg
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