Rivian-Samsung Battery Joint Venture is Dead

[kurtlikevonnegut]

Seems odd that Rivian wouldn't commit to buying a certain number of batteries... Rivian has a large order backlog; why are they not confident they need batteries? Were the quantities unreasonable?

I think it was a timeframe issue. Samsung likely wants a long term partnership deal with sourcing, Rivian wants to vertically integrate their battery manufacture. Additionally, I think Rivian is leery of getting locked into long term deals with legacy technology (similar to what happened with Tesla and Panasonic), especially with a much higher likelihood of next gen battery tech becoming commercially viable within the next 5 years.

If Rivian established a 5 year partnership with Samsung as a joint manufacturing ventrure, and then QuantumScape or one of the other companies brings their SS or next gen battery technology to market in 2-3 years Rivian puts themselves at a significant competitive disadvantage.

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[KiloV]

Right, but what manufacturer who is planning to ship EVs at a significant volume in the near future not actively building a plant with a battery supplier?

Lucid? BMW?

Stellantis is missing from here. IIRC Volvo is in Europe.

VW is making six in Europe.

Great graphic. I hadn't seen this before.

 

[Speedrye]

Right, but what manufacturer who is planning to ship EVs at a significant volume in the near future not actively building a plant with a battery supplier?

Lucid? BMW?

Stellantis is missing from here. IIRC Volvo is in Europe.

VW is making six in Europe.

Toyota announced a battery plant just south of Greensboro in NC. I'm assuming that would be a joint venture with Panasonic, but haven't read too much about it.

 

[SeaGeo]

Honestly, I wouldn't even call it Samsung playing hardball. Rivian's ask was frankly crazy. After Rivian publicly announced that they wanted to vertically integrate, and build their own cells, they ask Samsung if they can borrow their manufacturing line for a few years. I'd never say OK to that either.

I was/am trying to be fair with only hearing what I suspect is one side of the story. But yes, I can't imagine that supposed ask going over well for a chip fabricator.

 

[plugmein33]

Battery Building Joint Venture Between Rivian and Samsung is Dead

Matt St-Pierre
NEWS
January 31, 2022

Rivian’s “mismanagement” of its dealings with Samsung led the latter to launch a partnership with Stellantis

• Rivian’s multiple delays are partially at fault.
• The EV start-up company also made unreasonable requests according to Samsung.

It’s unclear what impact this falling-out with Samsung will have on Rivian’s production and product plans. The pair were in talks to form a battery-making joint venture but it’s no longer going to happen.

Samsung will continue to supply Rivian with batteries. The goal of this venture was to build a factory capable of producing 100GWh annually by 2025. According to thelec, Rivian went a little too far with its demands and requirements.
One of the issues is that Rivian would not commit to purchasing a certain amount of batteries from Samsung. The EV company also wanted to inspect the interior of the factories where the batteries are made. And potentially the most unacceptable request of all was that Rivian wanted a transfer of the battery-making technology.

The constant production woes and delays at Rivian, along with the above, were enough for the leadership of the Samsung Group to decide that they were no longer going ahead with the alleged joint venture plans.
Back in October of 2021, Stellantis and Samsung announced a partnership of their own. The two situations may not be coincidental.

Well, that's too bad. There's always this:

https://www.freshplaza.com/article/9397668/battery-made-from-2-923-lemons-breaks-record/

While lemons and cars usually shouldn't be used in the same sentence, this just might be the Rivian back up plan. BTW - there is a global glut of lemons. Just saying.

 

[jjwolf120]

Note that Samsung denied the validity of this article.

https://www.wglt.org/local-news/202...port-about-rivian-battery-joint-venture-talks

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