- Rivian reportedly stockpiled EV batteries to limit the effects of Trump’s import tariffs.
- The startup started shipping extra LFP cells from China late last year.
- More recently, surplus NMC batteries from South Korea were also shipped stateside.
The turmoil caused by the Trump administration’s implementation of additional import tariffs on vehicles and vehicle components has turned the auto industry upside down. Several car companies have postponed or withdrawn their financial guidance and are searching for ways to patch up their supply chains to keep their profit margins up.
Rivian, however, chose a radical approach to avoid the increased tariffs on electric car parts. The California EV startup quietly started stockpiling high-voltage batteries late last year to avoid the impending hike in duties. According to a Bloomberg report quoting people familiar with the matter, Rivian directly acquired a supply of lithium iron phosphate (LFP) battery cells from China’s Gotion High-Tech Co. ahead of last year’s U.S. presidential election.
Rivian uses LFP cells in its Commercial Van (RCV), but the base versions of the R1S and R1T passenger EVs also come with LFP batteries under the skin. According to the report, Rivian covered the shipment costs upfront, while Gotion agreed to pay for and maintain its own separate stockpile in the United States.
Separately, Rivian worked with Samsung SDI to ship a large amount of lithium-ion nickel manganese cobalt (NMC) batteries from South Korea to the U.S. These batteries are fitted in the more powerful versions of the R1S and R1T EVs.
Next year, when Rivian’s smaller R2 electric SUV is expected to go into production at its facility in Normal, Illinois–the same plant that assembles the van, R1S and R1T–the battery problem should be a thing of the past. That’s because the California startup has a deal with LG Energy Solution for U.S.-made cylindrical cells that have six times the capacity of current cells.
While unconfirmed by company officials, Rivian’s move to secure batteries ahead of turbulent times is smart. Despite its startup status, it found a way to keep things moving and, more importantly, keep the cash flowing without impacting customers with higher selling prices.
Last year, Rivian sold a record 51,579 cars, including the R1S SUV, R1T pickup and RCV van. Roughly 13,000 units were electric vans, according to data from Cox Automotive, which means about 38,000 R1S and R1T EVs found new owners last year.
