**United States**: Rivian has proactively secured large reserves of EV batteries from China and Korea to protect production of its R1T, R1S, and commercial vans amid US tariff pressures, while preparing a new Arizona plant for the R2 SUV with LG Energy Solution cells.
Rivian Automotive has strategically positioned itself as an electric vehicle (EV) manufacturer amidst the ongoing tariff challenges facing the U.S. automotive market. As reported by CarBuzz News, the company has taken significant steps to safeguard its production capabilities for its R1T pickup and R1S SUV by stockpiling a reserve of electric vehicle batteries. This move was initiated ahead of the U.S. elections last November.
Founded in June 2009 by R.J. Scaringe and headquartered in Irvine, California, Rivian has been preparing for potential supply chain disruptions and fluctuations in policy. According to a recent Bloomberg report, insiders familiar with the situation have disclosed that Rivian secured a supply of lithium iron phosphate cells from Gotion High-Tech Co., based in China, late last year. In addition to this, Rivian collaborated with its cell supplier, Samsung SDI, to facilitate the transfer of substantial quantities of battery inventory from South Korea to its U.S. production facilities earlier in 2023.
These supply fortifications have enabled Rivian to maintain operational continuity in its vehicle production. The batteries sourced from Gotion are primarily designated for use in commercial delivery vans that support Amazon’s fleet, which are assembled at Rivian’s facility in Chicago, Illinois. Bloomberg’s sources noted that payment for these battery cells was made in advance, with the cells now stockpiled for future use, while Gotion will retain a separate inventory within the U.S.
Rivian’s partnership with Samsung SDI will provide battery cells for both its R1T and R1S models. This strategy of stockpiling batteries not only ensures a steady supply but also mitigates the impact of the Trump administration’s 25% tariff on vehicles and auto parts imported from outside the U.S. By securing its battery inventory ahead of time, Rivian appears to be able to reduce costs and complexities associated with navigating a politically tumultuous landscape.
In anticipation of future production demands, Rivian is also preparing for the rollout of its new compact R2 SUV, which will utilise larger 4695-format battery cells sourced from LG Energy Solution. Plans are in place for the R2 to be manufactured in a new plant in Arizona, although initial production will commence in South Korea.
These proactive measures highlight Rivian’s commitment to securing its supply chain and production capacity, which is vital given the reliance of the electric vehicle industry on battery imports, particularly from China and Korea. The various strategic decisions made by Rivian could have significant implications for its operational stability and competitive positioning in the rapidly evolving market for electric vehicles.
Source: Noah Wire Services
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