How Rivian Plans To Tackle The Upcoming Battery Shortage Problem

From Volter Media.

SO, how is Rivian planning to tackle this problem?

Rivian’s strategy for securing battery cells is diversification. Diversification in terms of supplied, battery technologies and chemistries used. The automaker plans goes further by finding multiple suppliers and structured co-investments with partners toward dedicated capacity and, eventually, building cells internally, he said.

One of Rivian’s strongest defense against the battery shortage is its 260 mile dual mortor options for its R1T and R1S electric adventure vehicles.
Rivian plans to use new types of battery cells and it’s electric trucks moving forward. These include cells made with lithium iron phosphate or LFP chemistry for its standard level vehicles such as the dual motor 260 mile varients of boths vehicles and high nickel chemistry for its longer range vehicles.

These two battery technologies will be applicable to every Rivian vehicle such as the Amazon delivery vans the R1T pickup truck and the R1S SUV. Rivian brought these resolutions to light at its 2021 fourth quarter shareholder and earnings call it held a couple of weeks ago. This new decision will provide a lot of positive leeway for the automaker.

Tesla has found much success implementing the same strategy for its offerings.

LFP battery cells are generally cheaper than the more premium nickel cobalt aluminum oxide cells because they do not require any nickel or cobalt as the name suggests. This means it is less expensive seeing how the prices of cobalt and nickel are on an ever upward trend not to talk about supply availability.

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