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EV truck maker Rivian plans in-house battery cell manufacturing By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – The Rivian R1T electric truck is shown at an event held by the startup for those who have preordered it. It was taken in Mill Valley (California), U.S.A, 25 January 2020. REUTERS/Nathan Frandino/File Photos/File Photograph

By Hyunjoo Jin

SAN FRANCISCO, (Reuters) – Rivian Automotive is an electric truck manufacturer that currently uses batteries supplied by South Korean supplier Samsung (KSI:) SDI. It plans to make its own battery cells, according to Friday’s filing for a U.S. initial publicly offered.

Amazon.com Inc. (NASDAQ:) Co and Ford Motor (NYSE.:) Co backed the startup. The filing stated that it would supply third-party cells to “complement” those of other companies, which will ensure continuity in supply and help our growth.

Rivian posted losses of $1 billion for the first six months of this year. The company expects to spend approximately $8 billion on capital by the end 2023 in order to expand manufacturing capabilities, increase battery cell production, and invest in charging networks.

Rivian explained that because of the importance and effect the battery system has on the vehicle’s range, performance and price Rivian added, “We have built in-house capacities across the whole value chain,” adding that this includes the ability to develop and manufacture battery cells and the sourcing of critical raw materials.

The statement stated, “We intend to enhance our capabilities regarding proprietary cell development and manufacturing in-house cells and we expect these functions to grow substantially over time.”

Rivian, a manufacturer of R1T and R1S pickup trucks, announced April 25th that Samsung SDI was its preferred supplier of batteries for both the vehicle’s R1T pickup trucks and R1S sports utility vehicles.

Samsung SDI may build a battery factory in central Illinois, where Rivian is situated. In August, Senator Dick Durbin from Illinois stated to reporters.   

According to Reuters, Rivian has plans for a second U.S. plant. This will include production of battery cells.

Rival Tesla Inc (NASDAQ:) Inc announced last year a plan for building battery cells in-house. However, Tesla had earlier this year canceled plans to launch the Model S Plaid+ with new batteries.

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