Rivian has taken proactive steps to shield its electric vehicle production from potential supply chain disruptions, quietly securing a strategic reserve of battery cells from Asia ahead of newly implemented U.S. tariffs.
The move, which involved sourcing lithium iron phosphate batteries from China’s Gotion High-Tech Co. and coordinating additional shipments from South Korea’s Samsung SDI, is aimed at minimizing the impact of trade policy changes on the company’s manufacturing operations.
According to a report from Bloomberg, Rivian secured a stockpile of lithium iron phosphate (LFP) battery cells from China’s Gotion High-Tech Co. in late 2024, prior to the U.S. election. The batteries are primarily intended for the company’s electric delivery vans, the majority of which are being produced for Amazon under an exclusive agreement.
In addition, Rivian collaborated with South Korea’s Samsung SDI to transport a large quantity of battery inventory to the U.S. earlier this year. The battery cells from Samsung are reportedly earmarked for Rivian’s R1S SUV and R1T pickup truck, all of which are built at the company’s manufacturing plant in Normal, Illinois.
This dual-sourcing approach has provided Rivian with a critical buffer as automakers grapple with the impact of tariffs targeting imported vehicle parts, including batteries.
While Rivian has not officially commented on the strategy, sources familiar with the matter said the company covered the cost of the Gotion shipments upfront and is holding them for future production. Gotion has also reportedly agreed to maintain a separate U.S.-based inventory to support Rivian’s needs.
President Trump’s revised tariffs—announced April 29—exempt imported vehicles from separate steel and aluminum duties but retain stiff penalties on many EV components. These include tariffs that could raise the cost of Chinese-made batteries by up to 25%, making Rivian’s early procurement strategy potentially cost-saving in the months ahead.
