Rivian to benefit next year as EV battery material prices ease - CFO


FILE PHOTO: The Rivian name shown on one of the carmaker's new electric SUV vehicles in San Diego, U.S., December 16, 2022. REUTERS/Mike Blake/File Photo

(Reuters) -Electric-vehicle maker Rivian Automotive will benefit late this year and in 2024 from a significant deflation for battery material prices, finance chief Claire McDonough said at a technology conference on Thursday.

Prices for raw materials used in batteries surged to record highs in recent years on burgeoning demand for EVs, coupled with tight supplies due to the pandemic that were exacerbated by Russia's invasion of Ukraine.

This year, tapering demand for EVs has led to a drop in prices of batteries and a further fall is expected through the year, market research firm TrendForce said earlier on Thursday.

McDonough said at a Goldman Sachs conference that impacts of falling commodity prices will likely be felt in the fourth quarter of the year and into next year. Lower costs of battery raw materials could potentially boost margins for Rivian and its rivals who have struggled with high costs and dwindling cash balances.

Rivian, whose shares have risen about 27% so far this year, is also ramping up production of its in-house drive unit, which is expected to help reduce dependence on third-party suppliers, cut costs and improve production.

Strong demand, a production ramp-up and a clear path to profitability next year have helped Rivian stand apart from peers that have struggled with tough competition, output hurdles and the effects of Tesla's price war.

(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Sriraj Kalluvila and Timothy Gardner)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

'World of Warcraft' still going strong as it celebrates 20 years
Northvolt CEO steps down after company files for bankruptcy
Bitcoin at record highs, sets sights on $100,000
Ukraine urges gamers not to enter Chernobyl exclusion zone
Kioxia's market value set at $4.9 billion in IPO
Apple readies more conversational Siri in bid to catch up in AI
China’s richest man berates PDD, ByteDance for months of misery
WhatsApp rolling out transcription for voice messages in multiple languages
The sky's the limit for Bluesky
Two decades of Nintendo's top-selling DS console

Others Also Read