Rivian Stockpiled EV Batteries From Asia Before Trump Tariffs
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Rivian Automotive quietly built a reserve of electric vehicle batteries from Asia ahead of President Donald Trump’s tariffs, giving the company a measure of insurance against the upheaval in trade policy now pressuring the automotive supply chain.
The EV maker directly acquired a supply of lithium-iron-phosphate cells from China’s Gotion High-Tech Co. late last year, ahead of the U.S. election, according to people familiar with the matter.
More recently, the company worked with cell supplier Samsung SDI to move a large amount of battery inventory to the U.S. from South Korea, said the people, asking not to be identified discussing the strategy. The moves were aimed at ensuring continuity of supply and easing potential complications and costs from tariffs.
A representative for Rivian declined to comment. Samsung SDI and Gotion didn’t respond to requests for comment outside regular business hours in Asia.
The maneuvers offer insight into how some EV makers have responded to Trump’s rhetoric around restoring U.S. manufacturing and reducing reliance on other countries.
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Auto manufacturers have been walking a fine line with the administration, seeking concessions that would maintain some semblance of stability in the industry without drawing Trump’s wrath. There’s also concern that trade disputes will hold up key parts moving across borders, causing delays for manufacturing.
Trump signed directives April 29 easing the impact of his auto tariffs, exempting imported automobiles from separate tariffs on aluminum and steel. But many tariffs remain in place, threatening to drive up costs for carmakers and consumers alike. The EV industry is heavily dependent on China and South Korea for batteries.
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Rivian CEO RJ Scaringe told Bloomberg Television earlier this month that the company was “spending a lot of time interpreting and understanding” the implications of tariffs. The ultimate policy guidelines will “have a big impact on some of the decisions we make over the next year.”
The battery cells that Rivian bought from Gotion largely go in its commercial last-mile delivery van, which is used primarily by Amazon.com Inc. Rivian covered the costs of the shipment upfront, said the people familiar with the matter, holding the inventory for later use. Meanwhile, Gotion agreed to pay for and maintain its own separate stockpile in the U.S.
RELATED: Rivian Broadens Sales of Van Once Exclusive to Amazon
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The cells from Korea were part of a large order to bolster a strategic reserve to be used in Rivian’s consumer electric pickups and SUVs, the people said. All of the models are assembled in Rivian’s lone plant in Illinois.
Longer term, Rivian is working to secure new raw materials and mineral supply deals for its upcoming next-generation R2 vehicle, the people said.
Rivian recently signed its first agreement of that type, the people said, focusing on compliance with the terms of the Biden-era Inflation Reduction Act and ensuring its supply chain is focused on countries that are not regarded as foreign entities of concern. The forthcoming vehicles will use cells from LG Energy Solution supplied initially from Korea before shifting later to a factory in Arizona.
Amazon.com Inc. ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 12 on the TT Top 100 list of the largest private carriers and No. 1 on the Top 50 global freight list.
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