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Rivian founder and CEO RJ Scaringe
Collage: EV

Rivian Builds a China Sourcing Team Despite US Tariff Wall 

Rivian is seeking supply-chain roles based in China, a sign of how the EV maker is pushing on the country’s component base as it shifts down-market to cheaper models.

The Irvine, California-based company — which builds its vehicles only in the United States — has listed roles in Shanghai focused on supplier development.

The new job openings come as part of a China presence it disclosed for the first time this year, according to its careers site and a proxy statement filed in late April.

Rivian‘s hiring points to a strategy founder and CEO RJ Scaringe has described openly, in which Rivian taps China’s cheaper suppliers to hit the prices its coming R2 and R3 vehicles require, a cost problem its premium R1 line never had to solve.

Hiring Where It Does Not Build

The China roles sit apart from anywhere Rivian manufactures.

The company assembles its vehicles at a single plant in Normal, Illinois, and is building a second factory in Georgia that is due to come online in 2028, with no production planned in China at any point.

Rivian disclosed 10 employees in mainland China as of the end of 2025, its first-ever such figure, in a proxy statement filed in late April, and its Shanghai subsidiary, Ruiwang Automobile Sales, has existed on paper since 2022.

The mismatch between a China team and a US-only factory footprint is the clearest signal that the staffing serves supplier qualification and sourcing, not any commercial ambition in the Chinese market.

Cheaper Models

The push into China’s supply base tracks a deliberate move down-market that separates Rivian‘s coming vehicles from its first ones.

The R1T pickup and R1S SUV, the trucks that launched the brand, start at about $70,990 and $76,990 and carried an average selling price near $88,500 in early 2026, prices high enough to absorb the cost of a Western supply chain.

The R2, which began customer production in Normal in April, starts at about $45,000.

The R3 crossover to follow will be priced notably lower still, which Scaringe has placed in the $30,000s.

At those prices, the cost of every component matters in a way it did not for the R1.

That is why Rivian has engineered the newer vehicles’ supply chains to reach into China, a cost discipline that also underpins its software joint venture with Volkswagen Group.

Scaringe has made the logic explicit, saying Rivian engineered the R2 supply chain specifically to draw on the much lower cost basis of Chinese tier suppliers, while keeping final assembly in Illinois.

Scaringe’s Cost Case

The founder has been unusually direct about the size of the gap he is chasing.

At a Morgan Stanley conference in September 2024, Scaringe said every component through China’s tiered supply base is “20% to 30% to sometimes 40% cheaper” than a part sourced in a Western market.

He added that Rivian was actively designing and engineering its supply chains to identify where it could capture that lower cost basis.

Rivian benchmarked the advantage by buying and tearing down a Xiaomi SU7 sedan, after which Scaringe said there was “no secret magic thing” behind Chinese cost structures.

He has attributed the edge instead to a near-zero cost of capital and low labour that compound through every tier of the supply chain, a structural gap he says a Western-sourced version of the same car could not match.

Ruling Out China Sales

Even as he embraces Chinese suppliers, Scaringe has drawn a firm line at selling cars there.

Scaringe told the same Morgan Stanley conference that Rivian had decided against entering China for reasons that went beyond cost, citing a price war in which domestic manufacturers run at zero or negative margins for years.

The only Chinese supply deal Rivian has publicly confirmed is for lithium iron phosphate cells from Gotion High-Tech, struck in late 2024, while its main battery cells come from South Korea’s LG Energy Solution and Samsung SDI.

Against the Political Current

The China hiring runs counter to a strong push in Washington to strip Chinese content out of American vehicles.

The United States maintains a 25% tariff on imported auto parts, a 100% tariff on Chinese electric vehicles and a phased ban on Chinese connected-vehicle software and hardware taking effect from the 2027 and 2030 model years.

Chinese-origin components do not escape those duties by being fitted to a US-assembled vehicle, since they still incur the 25% parts tariff, and often China-specific levies, when they enter the country.

Rivian‘s bet is that the underlying cost gap is wide enough that many parts remain cheaper even after the tariff is paid.

The connected-vehicle rules add a further layer for a Shanghai team whose work may touch electronics, connectivity modules or driver-assistance components, categories the coming ban is designed to keep out of American cars.

More than 70 members of Congress urged the administration this spring to block Chinese automakers from US production.

The government then declined on July 1 to renew the North American trade pact in its current form, seeking tighter limits on Chinese parts entering through Mexico and Canada.

Some manufacturers are pulling back, with General Motors having set a 2027 deadline for certain suppliers to cut China ties, which sharpens how far Rivian‘s cost-driven hiring diverges from the prevailing mood.

Scaringe has acknowledged the headwinds even while chasing the cost opportunity, telling Fox Business in April 2025 that export limits on rare-earth metals from China were “a real challenge for electric vehicles.”

He has also argued that the stakes reach past price, warning that Chinese EVs are technically advanced and that on current trends, their makers “will win on tech.”

Cláudio Afonso founded CARBA in early 2021 and launched the news blog EV later that year.