Rivian Battery Supply Through 2026 Secured Amid Rare Earth and Trade Pressures

Rivian Battery

EV Startup Secures Battery Cells and Shifts Toward US Sourcing

Rivian has confirmed it secured enough battery supply to maintain vehicle production through 2025 and early 2026. The company sources battery cells for its R2 model from South Korea’s LG, which plans to begin battery manufacturing in Arizona by early 2027. This shift aligns with Rivian’s goal to localize its supply chain and reduce dependency on foreign-made battery components.

Adjusted Forecasts Reflect Market and Policy Headwinds

Rivian delivered 8,640 vehicles in Q1 2025, a 36% year-on-year drop. As a result, the company lowered its annual delivery target to 40,000–46,000 vehicles, citing trade regulations, tariffs, and shifting consumer sentiment. Most non-battery components are US- or USMCA-sourced, giving Rivian some resilience amid rising geopolitical and trade frictions.

Substitution Strategies Target Rare Earth Independence

To mitigate rare earth supply disruptions, Rivian is developing motors that eliminate heavy rare earths by using alternative magnet technologies. CEO RJ Scaringe noted that trade challenges are accelerating adoption of these substitutes. Tariffs could add several thousand dollars to unit costs in 2025, though manufacturing reimbursement programs may offset the impact.

The Metalnomist Commentary

Rivian’s rare earth mitigation strategies and localized battery sourcing demonstrate a forward-thinking response to geopolitical supply risks. Its long-term competitiveness may hinge on executing these shifts faster than its peers.