Tesla and Rivian EV Deliveries Rise as US Tax Credit Expires

Tesla

Tesla and Rivian EV deliveries surged in the third quarter as US buyers raced to secure incentives. The jump in Tesla and Rivian EV deliveries highlights how strongly policy deadlines can pull demand forward. As a result, automakers now face a more uncertain sales outlook in a post-incentive US EV market.

Tesla and Rivian EV deliveries both increased, but their strategic positions differ. Tesla delivered more than 497,000 vehicles in the quarter, up by 7pc year on year. Meanwhile, Rivian delivered 13,201 vehicles, marking a 32pc increase from a year earlier. This divergence shows that Tesla and Rivian EV deliveries are growing from very different scales, with Tesla defending volume leadership and Rivian still in ramp-up mode.

However, much of the strength in Tesla and Rivian EV deliveries reflects a rush ahead of policy change. US consumers accelerated purchases before the $7,500 federal EV tax credit expired on 30 September. This incentive had supported EV affordability and narrowed the cost gap with combustion models. Now that the tax credit has ended, manufacturers must rely more on price cuts, financing offers and brand strength.

Energy storage and competition reshape the US EV landscape

Tesla’s third quarter also underlined its shift into broader clean-energy infrastructure. The company deployed 12.5GWh of energy storage products, an 81pc increase from the third quarter of 2024. These storage deployments support grid stability and fast-charging networks, and they diversify earnings beyond vehicle sales. As a result, Tesla’s integrated model may cushion the impact of any slowdown in pure EV demand.

Competition around Tesla and Rivian EV deliveries is intensifying as legacy automakers scale production. General Motors reported a 107pc surge in EV deliveries to 66,501 units in the third quarter. GM expects sales to normalise in the fourth quarter, once the pre-expiry demand bulge passes. Therefore, US EV market growth will increasingly depend on sustained consumer confidence rather than one-off policy deadlines.

Rivian trims outlook as policy tailwinds fade

Rivian’s revised guidance shows the limits of relying on one strong quarter. The company narrowed its full-year delivery outlook to 41,500–43,500 vehicles. The upper end is 5pc lower than its August guidance, signalling caution on demand and ramp-up execution. Investors will watch whether Rivian can manage costs and scale production while incentives fall away.

As a result, Tesla and Rivian EV deliveries now sit at the intersection of policy, pricing and competition. The next test will be how both brands perform without the powerful pull of a federal tax credit. Their ability to hold margins, maintain growth and expand product lines will shape upstream demand for batteries, critical minerals and low-carbon materials.

The Metalnomist Commentary

The spike in Tesla and Rivian EV deliveries illustrates how sharply fiscal incentives can front-load EV demand. With the US tax credit gone, supply-chain planners from cathode producers to aluminium and copper suppliers should expect more volatile order cycles. Over the medium term, winners in the EV race will be those automakers that pair cost discipline with secure access to critical materials, not just headline delivery growth.

Uber Rivian Robotaxi Partnership Signals New Demand for Lidar Minor Metals

Uber Rivian Robotaxi

Uber Rivian robotaxi partnership plans mark a renewed US push into autonomous vehicle deployment after years of setbacks across the sector. Uber will invest up to $1.25 billion in Rivian to place 50,000 autonomous robotaxis on the Uber platform from 2028, beginning in San Francisco and Miami.

The Uber Rivian robotaxi partnership will start with 10,000 midsize SUVs. The companies can later negotiate up to 40,000 additional vehicles from 2030, with purchases handled by Uber or its fleet partners.

The investment is tied to autonomy milestones, showing that Uber wants exposure to robotaxi growth without rebuilding its own self-driving division. For Rivian, the deal offers potential volume, investor momentum, and a clearer route to monetize its autonomous vehicle technology.

Rivian Autonomy Suite Adds Metals Exposure to Robotaxi Growth

Rivian will supply the robotaxis through its third-generation autonomy suite, launched in December 2025. The system uses cameras, radars, Lidar sensors, and Rivian’s own high-powered inference chips.

This technology stack makes the robotaxi business a materials story as well as a software story. Lidar-rich autonomous platforms increase demand for advanced semiconductors, optics, sensors, and specialty materials.

Minor metals such as gallium, indium, and germanium are especially relevant because they support components used in optoelectronics, power electronics, infrared sensing, and Lidar-related systems. As autonomous driving hardware becomes more complex, these materials gain strategic importance in the EV supply chain.

US Autonomy Push Follows China’s Lidar-Rich EV Trend

Uber’s move reflects a broader return of US interest in autonomous mobility. The company sold its self-driving division in 2020 after high costs and safety problems, but it is now using partnerships to re-enter the market.

Rivian’s use of Lidar places it closer to the hardware trend already visible in China, where carmakers have added Lidar to midrange EVs to differentiate vehicles in a crowded market. That trend has already drawn attention from suppliers expecting stronger demand for gallium, indium, and germanium.

The partnership also arrives as Rivian looks for new growth after deliveries declined last year. Alongside the robotaxi plan, Rivian is pushing its smaller R2 platform and expects to use LG Energy Solution’s 4695 cylindrical cells for future production.

The Metalnomist Commentary

The Uber Rivian robotaxi partnership shows that autonomous vehicles could reopen a new demand channel for specialty metals and sensor materials. If robotaxi fleets scale, the strategic bottleneck may shift from vehicle assembly to Lidar, chips, battery cells, and the minor metals behind advanced sensing systems.

Rivian tariffs impact: thousands added per EV through 2025

Rivian

Rivian tariffs impact will add thousands of dollars per vehicle through 2025. The Rivian tariffs impact also threatens cash flow and margins. As a result, the Rivian tariffs impact forces pricing, mix, and cost actions across the lineup.

Tariffs, credits, and guidance under pressure

Rivian warned policy shifts will reshape 2025 results. Changes include EV tax credits, regulatory credits, trade rules, and tariffs. The company eliminated its 2025 regulatory credit revenue expectations. It cut guidance to $160mn from $300mn. However, Rivian reaffirmed 2025 deliveries at 40,000–46,000 units.

Product mix, costs, and demand outlook

Rivian said the R1 leads premium SUVs above $70,000. Management expects strong R1 demand into the third quarter. Meanwhile, the R2 program stays on track for first-half 2026. The R2 bill of materials is about half of R1. That supports lower pricing and broader addressable demand.

Rivian delivered 10,661 vehicles in the second quarter. Deliveries fell 23pc year on year amid market noise. Even so, the company sees long-term EV competition easing. Incumbents face weaker incentives to electrify quickly. Therefore, Rivian focuses on scale, content cost, and factory efficiency.

The firm narrowed its quarterly loss to $206mn. It raised guidance for adjusted EBITDA losses to $2.0bn–2.25bn. Prior guidance was $1.7bn–$1.9bn. Management flagged tariffs as a material headwind per unit. Pricing, options, and procurement must offset the per-vehicle burden.

The Metalnomist Commentary

Tariffs now function like a variable tax on EV bill of materials. Leaders will respond with design-to-cost, domestic sourcing, and disciplined trims. Watch R2 sourcing decisions and take-rate strategies; these will determine Rivian’s path to scale profitability.

Rivian Second-Life Battery Storage Project Links EV Packs to Grid Reliability

Rivian, Redwood

Rivian second-life battery storage is moving into commercial use after the US electric-vehicle maker agreed to deploy repurposed battery packs through Redwood Materials at its Normal manufacturing plant in Illinois. The project will use more than 100 used Rivian battery packs to provide 10 MWh of dispatchable battery energy storage.

The Rivian second-life battery storage project gives retired EV packs a second use before recycling. Redwood Materials will integrate the packs into a Redwood Energy system for on-site use at Rivian’s manufacturing facility.

Rivian second-life battery storage also reflects a wider shift in the battery value chain. Automakers and recyclers are looking for ways to extract more value from battery packs before recovering lithium, nickel, cobalt, copper, aluminium and other materials.

Redwood Turns Used EV Packs Into Stationary Storage

Redwood will receive EV battery packs from Rivian and convert them into a battery energy storage system for the Normal plant. The system will help reduce energy costs and support local grid reliability.

Second-life batteries are useful because EV packs can still retain meaningful capacity after vehicle use. They may no longer meet automotive performance requirements, but they can still serve stationary storage applications.

This creates a bridge between mobility and grid infrastructure. A battery pack can first support vehicle electrification, then provide stationary power, and later enter recycling for critical material recovery.

Redwood receives more than 20 GWh/yr of batteries, giving it a large feedstock base for both reuse and recycling. The company said it can deploy BESS projects in as little as six months, which matters as power demand rises quickly.

Data Center Power Demand Raises Storage Value

Rivian has attracted investors such as Google, which are seeking faster access to power solutions for artificial intelligence data center growth. This connection shows why second-life batteries are becoming more strategically relevant.

AI data centers need reliable, flexible and rapidly deployable power. Battery energy storage systems can help manage peak demand, improve resilience and reduce pressure on grids facing new large-load connections.

Repurposed EV batteries could become a lower-cost option where speed matters more than maximum energy density. They may also reduce waste and delay the need for immediate material recycling.

For the metals supply chain, this creates a more circular model. Battery materials stay in productive use longer, while recyclers build stronger long-term access to end-of-life packs and future recovered metals.

The Metalnomist Commentary

Rivian and Redwood are showing how EV batteries can become grid assets before they become recycling feedstock. The strategic value lies in extending battery life, lowering storage costs and securing future material recovery in one integrated loop.

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.

Rivian Adjusts Production Amid Supply Challenges but Eyes Future Growth

Rivian

Electric vehicle (EV) manufacturer Rivian faced production setbacks in 2024 due to parts shortages but managed to exceed revised output expectations and secure new partnerships for future expansions.

Production Dip and Recovery

Rivian reported a 14% decline in its annual EV production, with a total of 49,476 units produced in 2024, down from 57,000 units initially projected at the start of the year. Despite these challenges, which began in the third quarter due to a temporary shortage of components for its Enduro motor system used in the R1 series and commercial van variant, the RCV, the California-based company still surpassed its revised guidance of 47,000 to 49,000 vehicles. The company has since resolved the production constraints and is looking towards future improvements and expansions.

Strategic Developments and Future Outlook

Despite the slowdown, Rivian successfully increased its full-year sales by 2.9%, delivering 51,579 EVs, which falls within its target range of 50,500 to 52,000 for 2024. The company's quarterly output dropped by 27%, but deliveries saw a slight increase of 1.5%.

Looking forward, Rivian is set to close a significant $5 billion joint venture with German automaker Volkswagen in the fourth quarter. This partnership is expected to bolster Rivian’s production capabilities, especially as it prepares for the launch of its new R2 mid-size SUV in 2026. The R2 will feature advanced 4695 cylindrical battery cells from LG Energy Solutions (LGES), sourced from LGES's facility in Queen Creek, Arizona.

Additionally, Rivian has adjusted its assembly plans by relocating the production of the R2 to its Normal, Illinois plant, after halting plans for a new plant in Georgia earlier in the year due to a market slowdown and increased competition. In a move to support this transition, Rivian received interest from the Energy Department for a loan of up to $6.6 billion in late November to restart construction and support future growth.

Rivian Projects Flat to Lower EV Deliveries in 2025 Amid Component Shortages

RIVIAN PROJECT

US Automaker Faces Uncertainty Despite Cost Cuts and Regulatory Support

LG Energy Solution Deal Secures Future Battery Supply

Rivian, a US electric vehicle (EV) manufacturer, expects its 2025 vehicle deliveries to range from 46,000 to 51,000 units, which could be up to 11% lower than 2024’s total of 51,579 vehicles. The company cites ongoing component supply shortages as the main factor behind this conservative forecast.

Industry Headwinds Challenge Growth Plans

In addition to supply chain constraints, Rivian highlighted policy, regulatory, and demand uncertainties that could further affect its delivery numbers in 2025. These external factors remain largely beyond the company’s control, making projections especially challenging in today’s volatile EV market.

Rivian narrowed its annual loss to $4.7 billion in 2024, an improvement from the previous year’s $5.4 billion loss. This positive shift was aided by $300 million in regulatory credits under the US Inflation Reduction Act during the fourth quarter. Rivian also managed to cut costs by up to $31,000 per vehicle and increased the average selling price of its R1 model through the introduction of a high-value Tri-Motor trim.

Battery Supply Secured Through LG Energy Solution Partnership

To bolster its future production, Rivian signed a five-year agreement with LG Energy Solution in November, ensuring a supply of 67GWh of batteries to be produced in Arizona. This partnership is expected to enhance Rivian’s long-term supply chain resilience as the company scales production of its electric trucks and SUVs.

LG Energy Solution Signs Six-Year Battery Supply Deal with Chery

China Chery

LGES to Deliver 8GWh of Cylindrical Batteries

LG Energy Solution (LGES) has signed a six-year deal with China’s Chery Automobile to supply 8GWh of batteries. Deliveries are scheduled to begin in early 2026, powering around 120,000 electric vehicles. The agreement focuses on LGES’ 46-series nickel-cobalt-manganese cylindrical batteries, which will be installed in Chery’s flagship EV models.

The partnership also leaves room for expansion. LGES indicated that further projects could extend to additional Chery models, reinforcing the growing collaboration between one of South Korea’s top battery producers and China’s state-owned automaker.

Strategic Partnerships in a Competitive Battery Market

The LGES-Chery deal highlights the company’s efforts to secure long-term partnerships amid shifting battery demand. In November 2024, LGES struck a five-year, 67GWh agreement with US EV start-up Rivian, with production centered in Arizona. These contracts demonstrate LGES’ dual strategy of supporting premium EV manufacturers while also pursuing cost-competitive alternatives.

However, the rise of lithium-iron-phosphate (LFP) batteries has reshaped the competitive landscape. LGES announced it will start mass production of LFP batteries for EVs in the second half of 2025. In parallel, it began mass-producing LFP batteries for energy storage systems (ESS) in the US this June, while partially converting its Wroclaw plant in Europe for ESS applications.

The Metalnomist Commentary

LGES’ deal with Chery underscores the importance of strategic alliances in an increasingly competitive EV battery market. By balancing high-performance nickel-based batteries with cost-efficient LFP solutions, LGES is positioning itself to meet diverse global demand. The company’s ability to maintain utilization rates will hinge on how effectively it scales production and navigates price pressures.

Volkswagen Secures Long-Term Lithium Supply with Patriot Battery Metals

Patriot Battery Metals

Volkswagen, through its battery subsidiary PowerCo, has sealed a decade-long offtake agreement with Patriot Battery Metals, a Canadian lithium explorer, to source 100,000 metric tonnes per year (t/yr) of spodumene concentrate (SC). This deal is a strategic move to secure critical lithium resources as Volkswagen continues to expand its electric vehicle (EV) and battery production globally.

Patriot’s Shaakichiuwaanaan Asset Powers the Deal

The spodumene concentrate will be supplied from Patriot's Shaakichiuwaanaan Mineral Resources in Quebec, Canada. Notably, this resource is the largest lithium pegmatite deposit in the Americas and the eighth-largest globally, making it a vital supply chain asset for lithium-ion battery production. The concentrate will have a target grade of 5.5% lithium oxide, ideal for battery applications.

PowerCo plans to use the raw materials to fuel its gigafactories in Europe and North America, including its St. Thomas, Canada facility, which is set to be its largest cell factory, boasting a production capacity of up to 90 GWh per year.

Volkswagen Invests in Patriot and Future Lithium Conversion

As part of the partnership, Volkswagen has invested $48 million for a 9.9% stake in Patriot Battery Metals, signaling its commitment to long-term lithium sourcing. The deal also hints at future collaborations, including the potential development of a lithium conversion facility to ensure supply chain resilience and further vertical integration.

Volkswagen’s EV Push Faces Challenges

Volkswagen has delivered 506,500 battery electric vehicles (BEVs) globally from January to September 2024, a 4.7% decline year on year. Despite overall growth in North America, BEV deliveries in the US fell by 26%, reflecting competitive challenges in the region.

In Europe, Volkswagen remains dominant with a 19% market share in the BEV segment, reaffirming its stronghold. To bolster its EV ecosystem, the German automaker also formed a $5.8 billion joint venture with Rivian in November 2024 to advance software and electronics architectures for scalable EV platforms.

Strategic Significance

This agreement underscores the importance of securing stable, long-term access to critical minerals like lithium as automakers ramp up EV production. It also highlights Canada’s growing role as a key player in the global battery supply chain, thanks to its abundant natural resources and strategic partnerships with major manufacturers like Volkswagen.

Lucid Motors to Double EV Production in 2025 Despite $2.7 Billion Loss in 2024

Lucid Motors

Leadership Change and Panasonic Battery Deal Signal Strategic Shift for U.S. Luxury EV Maker

Lucid Sets Ambitious 2025 Production Target Amid Financial Headwinds

Lucid Motors has raised its 2025 production forecast to 20,000 vehicles, more than doubling its 2024 output of 9,029 units. The company met its prior guidance of 9,000 units, indicating improved operational control despite ongoing financial losses.

Lucid reported a net loss of $2.7 billion in 2024, slightly down from $2.8 billion in 2023. Although losses remain steep, the consistent production performance and forward-looking targets show signs of gradual stabilization.

Executive Leadership Changes as Lucid Repositions Strategy

Peter Rawlinson, Lucid’s long-standing CEO, will transition into a new role as strategic technical advisor. The company appointed Marc Winterhoff as interim chief executive to steer Lucid through its next growth phase.

This leadership reshuffle comes at a pivotal time, as Lucid attempts to scale production, control costs, and reinforce its position in the luxury EV segment amid fierce competition from Tesla, Rivian, and traditional automakers pivoting to electric platforms.

Battery Supply Secured Through Panasonic Partnership

To support its expanded production, Lucid maintains a multi-year battery supply agreement with Japan’s Panasonic, ensuring a stable supply of lithium-ion battery cells. This deal helps mitigate potential supply chain disruptions, especially as global EV battery demand continues to soar.

With fresh leadership and a secured supply chain, Lucid aims to strengthen its foothold in the high-performance electric sedan market while positioning itself for long-term scalability.