Rivian CEO warns that EV battery shortage can be worse than current chip shortage

Written by Cláudio Afonso | info@claudio-afonso.com

Rivian CEO RJ Scaringe warned on Monday April 18 that the shortage of electric vehicles batteries can affect the auto industry soon being a challenge that “could surpass the current computer-chip shortage”. Auto makers have been facing limited supplies of raw materials like cobalt, lithium and nickel that are fundamental when making a battery. As reported by WSJ, Rivian’s CEO told reporters last week:

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.

Rivian Automotive Inc. Chief Executive RJ Scaringe

“We don’t have a demand challenge at all. We have a ‘can we create enough vehicles’ challenge?” Scaringe told CNBC, “We have a supply chain problem. It’s frustrating, but we’re going to get through that.” Although, Rivian’s CEO said the company is “really confident” it can produce a total of 25,000 vehicles in 2022.

Earlier today, Piper Sandler analyst Alexander Potter lowered its price target on Rivian Automotive to $112 from $130 while maintaining an Overweight rating on the shares. The analyst says Rivian Automotive “is best-positioned to replicate Tesla’s success.” Rivian has a chance to consolidate three large segments of the auto market before Tesla releases competing products, Potter tells investors in a research note.

The company announced last week the hiring of Anisa Kamadoli Costa as the company’s Chief Sustainability Officer, effective April 18, 2022. Previously, Anisa was Chief Sustainability Officer at Tiffany & Co. and Chairman and President of the Tiffany & Co. Foundation.

At Rivian, she will be responsible for the company’s sustainability roadmap for both the business and its products, and will help lead Forever, the foundation that Rivian established at its initial public offering with 1% of equity – 8.3 million shares. Anisa is the company’s first Chief Sustainability Officer and will report directly to Rivian’s Chief Executive Officer, RJ Scaringe.

Written by Cláudio Afonso | info@claudio-afonso.com