Rivian CEO Warns "Battery Shortage May Surpass Semiconductor Shortage"

RJ Scaringe, CEO of American electric vehicle company Rivian
Photo by Reuters

[Asia Economy Reporter Jeong Hyunjin] RJ Scaringe, CEO of Rivian, a U.S. electric vehicle company known as the 'rival to Tesla,' warned that the company may soon face a shortage of electric vehicle battery supply, predicting that this situation will surpass the semiconductor shortage crisis.

According to the Wall Street Journal (WSJ) and others on the 18th (local time), CEO Scaringe stated during a media tour at Rivian's factory in Normal, Illinois last week, "Simply put, the total global battery production over the next 10 years will not even reach 10% of what we need," adding, "This means that 90-95% of the supply chain does not exist."

This statement comes amid rising costs due to shortages of key raw materials such as cobalt, lithium, and nickel, which are primarily used in electric vehicle batteries, placing a burden on the automotive and battery industries. Elon Musk, CEO of Tesla, the world's largest electric vehicle company, recently tweeted that the rise in lithium prices is "absurd" and that he plans to "mine or refine it directly."

CEO Scaringe predicted that securing sufficient battery supply will be the biggest obstacle for the electric vehicle market, which is expected to grow from the current level of about one million units to tens of millions over the next decade. He foresaw shortages occurring across all stages, from mining raw materials to processing and manufacturing batteries.

Regarding the semiconductor shortage experienced by the automotive industry last year, CEO Scaringe described it as a relatively minor issue caused by an imbalance of supply and demand, leading to excessive purchases and inventory buildup. He expects the battery issue to be much more severe. He also said, "Semiconductors are just a small appetizer compared to what we will experience with batteries over the next 20 years."

Rivian, a company that gained attention for producing electric pickup trucks before Tesla, currently manufactures the pickup truck R1T, the sport utility vehicle (SUV) R1S, and delivery vans. Rivian announced on the 6th that it produced about 2,500 vehicles in the first quarter of this year and delivered 1,227 units, reaffirming its annual target of 25,000 vehicles. Rivian plans to expand the annual production capacity of its Illinois factory to 200,000 units by 2023 and is considering establishing a new factory near Atlanta, Georgia, in 2024.

This content was produced with the assistance of AI translation services.