Rivian Secretly Accumulated Battery Stockpile as Countermeasure Against Trump's Tariffs
Rivian Secures Strategic Battery Reserves to Evade U.S. Tariffs
Rivian, the electric vehicle (EV) manufacturer, has taken a proactive approach to battery cell sourcing in light of the U.S. tariffs and regulations aimed at promoting domestic or compliant supply chains.
According to reports by Bloomberg and sources familiar with the matter, Rivian has secured a strategic reserve of battery cells from Asia ahead of U.S. tariffs. This reserve includes lithium iron phosphate batteries from China's Gotion High-Tech Co., primarily intended for Rivian's electric delivery vans, as previously stated. The batteries from South Korea's Samsung SDI, on the other hand, are earmarked for Rivian's R1S SUV and R1T pickup truck.
Rivian has covered the cost of the Gotion shipments upfront and is holding them for future production. The company has also coordinated additional shipments from Samsung SDI. In a move to minimize the impact of trade policy changes on its manufacturing operations, Rivian has reportedly agreed to maintain a separate U.S.-based inventory to support its needs, with Gotion High-Tech Co. allegedly agreeing to this arrangement.
The high costs for battery materials like nickel, cobalt, and rare earths, compounded by export restrictions from China and supply chain disruptions, pose a significant challenge for EV manufacturers like Rivian. To mitigate these issues, the company is investing in long-term battery partnerships, though specific suppliers or sourcing tactics remain limited.
Federal policies such as the Inflation Reduction Act (IRA) offer production credits tied to sourcing battery cells domestically or from tariff-eligible countries, motivating Rivian to align its sourcing to qualify for credits and avoid tariffs.
While the search results do not explicitly mention Samsung SDI or Gotion High-Tech Co., they do imply collaborations with major battery cell manufacturers. Rivian benefits from being able to source some components more easily due to shared suppliers with other EV makers.
President Trump's revised tariffs, announced on April 29, exempt imported vehicles from separate steel and aluminum duties but retain stiff penalties on many EV components. The early procurement strategy of Rivian, securing a strategic reserve of battery cells, may prove cost-saving in the months ahead due to these tariffs.
It is important to note that no official comment on the strategy has been made by Rivian. However, given the lack of direct mention in the search results, it is likely that Rivian’s strategy involves balancing sourcing from these suppliers with ensuring a portion of cells or components come from North American or tariff-compliant sources, possibly through localized cell assembly or joint ventures.
All of these vehicles are built at Rivian's manufacturing plant in Normal, Illinois. The majority of these electric delivery vans are being produced for Amazon under an exclusive agreement.
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- Rivian's strategic reserve of battery cells from Asian manufacturers like Gotion High-Tech Co. and Samsung SDI demonstrates their commitment to securing supply chain sources for their electric vehicles, despite the challenges posed by U.S. tariffs in the finance and technology sectors of the business industry.
- To evade the impact of tariffs on EV components under President Trump's revised policies, Rivian is reportedly balancing its sourcing strategy for battery cells, possibly exploring localized cell assembly or joint ventures in the North American region, while maintaining partnerships with major Asian battery manufacturers like Gotion High-Tech Co. and Samsung SDI.
