Rivian’s launch hasn’t gone smoothly as the fledgling automaker has struggled to ramp production, resulting in them missing their 2021 production targets, even after cutting them.
The issues were enough to shut down the entire production line for one week earlier this month.
Rivian says they have now been able to increase production to 200 units per week, but those issues and delay have cost them a domestic supply of EV batteries.
Rivian has been in talks with Samsung SDI to build a cell factory in the US to help meet their goal of 100GWh of battery production by 2025.
Those talks have now broken down over the production issues and delays, and terms unacceptable to Samsung SDI, according to sources familiar with the discussions.
The terms included a request for “a transfer of the battery making technology and also rights to inspect the interior of factories,” reports the South Korean publication The Elec.
Rivian also didn’t agree to buy specific amounts of the batteries produced at the facility.
Despite there no longer being a deal for a factory, Samsung SDI will continue to supply Rivian with batteries for the R1S and R1T from their other facilities.
The partnership between the two companies was announced in April 2021.