The demand for EV’s has drastically increased as more and more countries start promoting them in order to keep their deadlines on promoting the SDG goals set by the UN.
Electric truck manufacturer Rivian Automotive, which is currently sourcing its batteries from the South Korean supplier Samsung SDI, has revealed its plan to build its own battery cells in-house as per the latest data attained from its filing for a US initial public offering on Friday.
The start-up which is currently backed by the multinational company Amazon.com Inc and car manufacturer Ford Motor Co said in the filing that its own battery cells would “complement third-party cell procurement which will provide supply continuity and support our anticipated growth.”
Rivian had earlier disclosed losses of almost a billion dollars in the first half of the year. The company said it sees capital expenditure of which amount to approximately $8 billion through the end of 2023 to invest for its additional manufacturing capacity, battery cell production, charging networks and other such facilities.
“Given the paramount importance and impact of the battery system on vehicle range, performance, and price, we have built in-house capabilities across the entire value chain,” Rivian said, adding that includes battery cell development, battery manufacturing expertise and critical raw materials sourcing.
“Over time, we intend to expand our capabilities related to proprietary cell development and in-house cell manufacturing and expect that these functions will grow substantially in the coming years,” it said.
This decision comes at a time when the lack of raw materials such as chips and batteries required for car production has seen an acute shortage to a point where many new cars have delayed their launch due to the same. The demand for such EV’s have drastically increased as more and more countries start promoting them in order to keep their deadlines on promoting the SDG goals set by the UN.
Rivian had announced in April this year that it had opted for the Samsung SDI as a battery supplier for its R1T pick and R1S sport utility vehicle. Samsung SDI is considering building a battery plant in central Illinois where a Rivian factory is located, US Senator Dick Durbin of Illinois told reporters in August.
Reuters reported in July that Rivian plans to build a second US assembly plant that will also include battery cell production, citing people familiar with the matter.
Rivian’s rival Tesla Inc last year announced a plan to build battery cells in-house, but Tesla earlier this year cancelled a plan to launch its longest-range Model S Plaid+ sedan with the new battery cells.
Source: Economic Times
Image credit: cnbc.com
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