United States based electric vehicle manufacturer specializing in building sport utility vehicle and pickup truck Rivian Automotive announced that it plans to start building batteries in-house since the company has been securing batteries for its vehicles from South Korean supplier Samsung SDI CO Ltd. (006400).
In a regulatory filing, the company says manufacturing its own batteries would complement third-party cell procurement which will provide supply continuity and support its expected growth rates.
“Given the paramount importance and impact of the battery system on vehicle range, performance, and price, we have built in-house capabilities across the entire value chain,” said Rivian.
The company further revealed that it lost around $1 billion in the first half the year Rivian expects its capital expenditure to increase up to $8 billion by the year 2023. The company will invest the capital in manufacturing capacity, battery cell production charging networks and other battery related operations.
“Over time, we intend to expand our capabilities related to proprietary cell development and in-house cell manufacturing and expect that these functions will grow substantially in the coming years,” added Rivian.