Rivian CEO RJ Scaringe has voiced concerns over an impending EV battery shortage that will affect the entire industry.
Speaking to the Wall Street Journal, RJ Scaringe said that the shortage could make the semiconductor shortage look palatable.
“Semiconductors are a small appetizer to what we are about to feel on battery cells over the next two decades,” Scaringe said during a tour of the company’s plant in Normal, Illinois. “Put very simply, all the world’s cell production combined represents well under 10% of what we will need in 10 years. Meaning, 90% to 95% of the supply chain does not exist.”
RJ Scaringe went on to discuss how Rivian will fortify its supply chain by diversifying suppliers and building up its manufacturing capacity. However, these measures will not make up for raw material shortages and rising prices.
Tesla CEO Elon Musk has previously voiced concerns over lithium prices, revealing that Tesla might have to get into mining to produce its own raw materials.
Between January 2021 and January 2022, lithium prices rose 478.3% and have since increased further. Passing on these costs to consumers is inevitable if the trajectory keeps going up.
As for Rivian, EV battery shortages will limit production numbers and stunt growth, but they are planning in-house battery manufacturing. Moving battery production in-house will streamline their operations and increase capacity.