Photo: Rivian | Edited
Rivian started the year with impressive Q1 results, showing that production issues are now in the rearview mirror. The EV startup has optimized its manufacturing processes and is now using LFP batteries and Enduro drive units for its EDV 500 and 700 vans. This means the R1S and R1T will also gain LFP versions soon.
Rivian is under pressure to show that it can surpass market hurdles and ramp production while floating toward profitability. The EV startup didn’t end 2022 very well, with underwhelming production numbers and weak financials that made many people wonder how long its cash reserves would last before drying out. Rivian lost almost $7 billion last year, and current cash reserves and spending structure would allow it to last two more years unless it improves execution.
The first quarter results paint a more optimistic picture, with production surpassing Wall Street expectations. The EV startup is confident it can reach a 50,000-unit production this year, as promised in the 2023 guidance. Rivian CEO RJ Scaringe congratulated his team for the strong Q1 results and offered an update on the company’s plans to adopt LFP cells in its battery packs. As stated earlier, the LFP batteries would start their career with the EDV vans and later get into the R1 vehicles.
According to Scaringe’s tweet, Rivian halted EDV production during the quarter to prepare the production line for the introduction of LFP battery packs and the Enduro drive units. Rivian was unique among EV startups for outsourcing the drive units in its vehicles. This allowed it to jumpstart production at the expense of some disadvantages. Rivian later caught up with the Enduro drive units developed in-house. The new motors would first power the EDV vans and later get into the R1T and R1S.
The LFP battery packs were supposed to be installed on the EDV in 2022, but they are about half a year late. Based on Scaringe’s statement, the LFP batteries should become available in passenger vehicles later this year, probably at the same time as the Enduro drive units. Rivian is also pursuing its own battery development, including new chemistries, but the LFP cells would be produced in collaboration with a partner, most probably from China.
Rivian would certainly speed up LFP cell adoption and Enduro drive unit deployment, considering that Amazon has scaled back its orders for the EDV van. Earlier this year, CNBC discovered that Rivian is trying to end its exclusivity agreement with Amazon for the EDV. Faced with a lower-than-expected order rate, Rivian wants to be able to sell the EDV vans to other companies. We’re not sure how well this went for Rivian, but if we ever see the EDV with different logos, we know it was successful.
LFP batteries should bring important cost benefits for Rivian and, possibly, its customers if the startup decides to pass some of the savings to buyers. The downside is their lower energy density, although much progress has been made lately. Clever packaging like CATL’s Cell-to-Pack can improve energy density by packing more cells and using the pack as a structural component of the car.
The first quarter results paint a more optimistic picture, with production surpassing Wall Street expectations. The EV startup is confident it can reach a 50,000-unit production this year, as promised in the 2023 guidance. Rivian CEO RJ Scaringe congratulated his team for the strong Q1 results and offered an update on the company’s plans to adopt LFP cells in its battery packs. As stated earlier, the LFP batteries would start their career with the EDV vans and later get into the R1 vehicles.
According to Scaringe’s tweet, Rivian halted EDV production during the quarter to prepare the production line for the introduction of LFP battery packs and the Enduro drive units. Rivian was unique among EV startups for outsourcing the drive units in its vehicles. This allowed it to jumpstart production at the expense of some disadvantages. Rivian later caught up with the Enduro drive units developed in-house. The new motors would first power the EDV vans and later get into the R1T and R1S.
The LFP battery packs were supposed to be installed on the EDV in 2022, but they are about half a year late. Based on Scaringe’s statement, the LFP batteries should become available in passenger vehicles later this year, probably at the same time as the Enduro drive units. Rivian is also pursuing its own battery development, including new chemistries, but the LFP cells would be produced in collaboration with a partner, most probably from China.
Rivian would certainly speed up LFP cell adoption and Enduro drive unit deployment, considering that Amazon has scaled back its orders for the EDV van. Earlier this year, CNBC discovered that Rivian is trying to end its exclusivity agreement with Amazon for the EDV. Faced with a lower-than-expected order rate, Rivian wants to be able to sell the EDV vans to other companies. We’re not sure how well this went for Rivian, but if we ever see the EDV with different logos, we know it was successful.
LFP batteries should bring important cost benefits for Rivian and, possibly, its customers if the startup decides to pass some of the savings to buyers. The downside is their lower energy density, although much progress has been made lately. Clever packaging like CATL’s Cell-to-Pack can improve energy density by packing more cells and using the pack as a structural component of the car.
Congrats to the team for a strong Q1! R1 production made significant progress over Q4 2022. We limited production of our EDV van this quarter while we brought up our LFP pack and new Enduro motor in the 500 and 700. Excited for the continued ramp ahead! pic.twitter.com/XvVM4nFAWL
— RJ Scaringe (@RJScaringe) April 4, 2023
Google News