Rivian, the electric vehicle (EV) innovator, is bracing for turbulence from President Trump’s new auto tariffs by stockpiling critical battery supplies, ensuring its production lines keep humming. According to a Bloomberg report, Rivian began amassing lithium-iron phosphate (LFP) battery cells from China’s Gotion High-Tech last year, a strategic move to shield its Commercial Van and upcoming R2 SUV from supply chain disruptions and cost spikes.

Battery Reserves Counter Tariff Threats

Rivian’s foresight is paying off. The company has secured a stockpile of LFP batteries for its Commercial Van, now available to other businesses, with Gotion funding a separate U.S.-based reserve. Sources told Bloomberg that Rivian covered upfront costs to lock in this inventory, a buffer against tariffs that could inflate prices. Additionally, Rivian is shifting much of its battery supply for the R1T pickup (starting at $69,900) and R1S SUV (starting at $74,900) from South Korea’s Samsung SDI to U.S. facilities, minimizing exposure to import duties. All three vehicles roll off the line at Rivian’s plant in Normal, Illinois, which produced over 56,000 EVs in 2024.

Rivian Stockpiles Batteries To Dodge Trump’s Ev Tariffs, Secures Supply For R2 Launch

These tariffs, part of Trump’s trade policy, have rattled the auto industry. Major players like GM, Volkswagen, and Volvo have scrapped financial forecasts amid the uncertainty, but Rivian’s proactive stance sets it apart. By securing domestic battery reserves, Rivian avoids the chaos threatening competitors’ supply chains.

R2 Launch Hinges on Strategic Sourcing

Rivian’s next big bet, the R2 SUV, aims to capture the mass market with a starting price around $45,000 and a range of roughly 300 miles. To keep costs down, Rivian has inked deals for battery cells from LG Energy Solution, initially sourced from South Korea but transitioning to LG’s new Arizona facility by 2027. This shift aligns with Rivian’s goal to localize production and sidestep tariffs, which could add thousands to vehicle prices. Sources also hinted at similar agreements for raw materials, though details remain under wraps.

The R2, alongside the sporty R3 and rugged R3X, represents Rivian’s push to scale affordability without sacrificing quality. With tariffs looming, Rivian’s battery strategy could mean the difference between a smooth 2026 launch and a costly delay.

Industry Ripples and Consumer Costs

Trump’s tariffs, partially eased but still disruptive, threaten to reshape the EV landscape. Higher import costs could drive up prices for consumers, with analysts estimating a potential $2,000–$5,000 hike per vehicle. For EV owners and enthusiasts, this means pricier options and slower adoption. Meanwhile, China’s dominance in battery production—Gotion alone supplies 10% of global LFP cells—gives it leverage as the U.S. scrambles to build domestic capacity.

Rivian’s moves highlight a broader industry trend: automakers are racing to localize supply chains. Tesla, for instance, is expanding its Nevada Gigafactory, while Ford partners with CATL for U.S.-made LFP batteries. Yet, with only 2% of global lithium processed domestically, the U.S. faces an uphill climb.

EVXL’s Take

Rivian’s battery stockpile isn’t just a savvy business play—it’s a lifeline for American EV dreams. While Trump touts a “Golden Age,” tariffs risk stalling the U.S. in the global EV race, handing the lead to China. Rivian’s hustle to secure batteries shows grit and smarts, like a desert traveler storing water before a storm. For EV fans, this means R1Ts and R2s should stay on track, but the bigger picture stings: higher costs could dim the spark of EV adoption. Rivian’s proving it can navigate the chaos—let’s hope the industry follows suit.