Rivian’s reportedly sitting on a stockpile of tariff-free batteries

Tech Crunch - Apr 30th, 2025

Rivian, an electric vehicle manufacturer, strategically accumulated a stockpile of lithium iron phosphate batteries to mitigate the impact of tariffs imposed by President Donald Trump. These batteries were sourced from the Chinese firm Gotion and were intended for Rivian's delivery vans, primarily produced for Amazon. Additionally, Rivian collaborated with Samsung SDI to transfer a significant amount of battery inventory from South Korea to the United States. This move aims to alleviate the pricing pressures resulting from Trump's auto tariffs, which affect components imported into the U.S. for vehicle manufacturing.

The context of these actions is set against the backdrop of Trump's revised tariff plan, which, while providing some relief, still poses challenges with potential price increases for new cars. By securing a substantial battery inventory, Rivian positions itself to better handle these economic pressures and continue its operations without drastic cost hikes. This strategy underscores the complexities and global interdependencies of the automotive supply chain, particularly in an era of shifting trade policies and international relations.

Donald Trump Amazon Rivian Auto Tariffs Batteries Gotion Samsung Sdi

Story submitted by Fairstory

RATING

6.6

Fair Story

Consider it well-founded

The article provides a timely and relevant examination of Rivian's strategic response to tariff challenges, supported by credible sourcing from Bloomberg News. However, it could benefit from greater transparency and detail, particularly regarding the specifics of Rivian's actions and the broader industry context. While the article is clear and accessible, it lacks depth in exploring diverse perspectives and the wider implications of tariff policies. Enhancing balance and transparency, along with a more comprehensive analysis, could improve the article's overall quality and impact.

Accuracy

The article presents several factual claims, notably Rivian's strategy to stockpile batteries before and after Donald Trump's election, which is attributed to Bloomberg News. The claim that Rivian bought lithium iron phosphate batteries from Gotion and later moved inventory from Samsung SDI is consistent with reported industry practices and aligns with the company's strategic needs. However, the article lacks specific details, such as the exact timeline of these purchases and the quantity of batteries, which are crucial for full verification. Additionally, the mention of Trump's tariffs and their impact on pricing requires further corroboration with official tariff documents and industry analysis to confirm the extent of their effect.

Balance

The article focuses primarily on Rivian's actions and the potential impact of Trump's tariffs, presenting a somewhat one-sided view. It does not explore other perspectives, such as the potential benefits of such tariffs or the broader industry response. The narrative centers on Rivian's strategy, which may implicitly suggest a bias towards the company's foresight and planning. Including viewpoints from other stakeholders, such as industry analysts or competitors, could provide a more balanced perspective on the issue.

Clarity

The article is generally clear and concise, effectively communicating the main points about Rivian's battery stockpiling and the impact of tariffs. However, certain aspects, such as the timeline of events and the specifics of the tariff changes, could be presented more clearly to enhance understanding. The article assumes a level of prior knowledge about the automotive industry and tariff policies, which may hinder comprehension for some readers.

Source quality

The article cites Bloomberg News, a reputable source known for its reliable financial and business reporting. This lends credibility to the claims made about Rivian's strategic actions. However, the article could benefit from additional sources to corroborate the information, such as statements from Rivian or other industry experts. The reliance on a single primary source limits the breadth of perspectives and depth of information.

Transparency

The article provides limited transparency regarding its sources and the basis for its claims. While Bloomberg News is mentioned, the article does not disclose the methodology or evidence behind the reported stockpiling strategy. There is a lack of detailed information about how the data was obtained or verified, which affects the reader's ability to fully assess the credibility of the story.