Rivian's Hidden Stockpile Might Be Crucial for Overcoming Tariffs | Carscoops

      This could be the most proactive strategy we've encountered regarding tariffs.

      14 hours ago

      by Stephen Rivers

      Rivian has reportedly begun purchasing significant amounts of batteries prior to the election to build a stockpile.

      This reserve allows Rivian to manage potential price increases due to tariffs.

      The company also intends to transition to 4695-format cells, which will be manufactured locally in Arizona to adhere to regulations.

      Automakers throughout the industry are rushing to adapt to Donald Trump’s tariffs, with some adopting particularly inventive approaches. Rivian, for instance, seems to have taken a notably proactive approach. Insider sources indicate that the automaker has been accumulating a stockpile of batteries since before the election.

      As reported by Bloomberg, Rivian demonstrated foresight by securing a supply of lithium iron phosphate (LFP) cells from China’s Gotion High-Tech Co. prior to the election, aimed at powering its delivery vans for Amazon. Following the political upheaval, the company partnered with Samsung SDI to import a substantial quantity of battery cells from South Korea, with hopes this would sustain production for its R1T pickup and R1S SUV models.

      Read: Trump Eases Auto Tariffs With 85% Rule While Buyers Brace For Sticker Shock

      This strategic maneuver acts as a buffer against potential price pressures resulting from Trump’s new tariffs. Although recent adjustments to the tariff plan have provided some relief, they still present considerable challenges for automakers that depend on international supply chains, which can significantly affect companies like Rivian that require battery imports for every vehicle in their lineup. Notably, Samsung SDI indicated last week that the tariff conflict would increase the costs of building electric vehicles.

      For the moment, Rivian has gained some additional flexibility before needing to consider price hikes. Meanwhile, it is also preparing for the launch of its smaller R2 SUV. For this new model, the company plans to utilize 4695-format cells from LG Energy Solution. Initial production will occur in Korea, but Rivian intends to transition operations to LG’s new facility in Queen Creek, Arizona. Even aside from tariff concerns, this shift will help Rivian better comply with the requirements of the Inflation Reduction Act.

      The Rivian R2

      Whether this is a masterstroke of logistics or mere survival instinct depends on one’s interpretation of the political landscape. Regardless, Rivian’s battery strategy provides it with a short-term buffer as it attempts to localize its supply chain before tariffs become even more pressing. Among the various strategies we’ve observed from automakers, this is the first instance of one proactively securing supplies to this extent.

      Ultimately, Rivian’s forward-thinking approach might be crucial in keeping it on course, at least until the tariff situation stabilizes.