Rivian CEO discusses tariffs, says EV maker has 'very US-centric supply chain'

Core Viewpoint - Rivian is navigating the challenges posed by the Trump administration's 25% tariffs on imported vehicles and auto parts, focusing on maintaining a U.S.-centric supply chain while addressing consumer concerns about pricing and availability [1][5]. Company Operations - Rivian's electric vehicles (EVs), including the R1S and R1T, are manufactured in Normal, Illinois, with a strong emphasis on building out the supply chain and production footprint in the U.S. [4][8]. - The company relies on a complex supply chain with components sourced from various suppliers, both domestic and international, making it challenging to adapt to the new tariff environment [4][9]. Supply Chain Challenges - The 25% auto tariff affects all manufacturers, and Rivian's supply chain includes components from multiple countries, complicating the impact of tariffs [9]. - Recent restrictions imposed by China on the export of rare earth metals pose additional challenges for the EV industry, as these materials are crucial for the production of permanent magnet motors used in electric vehicles [9][11]. Market Dynamics - In 2024, EVs accounted for 8.1% of vehicle sales in the U.S., highlighting the need for more choices in the market to increase this share [11]. - Rivian acknowledges that the limited options for electric vehicles under $50,000 contribute to Tesla's significant market share, which exceeds 50% [12]. Product Lineup - Rivian currently produces the R1S SUV, R1T pickup truck, and commercial electric vans, with plans for additional models (R2 and R3) in the pipeline [13].