Rivian laid off about 20 members of its battery cell development team

[SANZC02]

I think the key word here is battery cells, they are just one part of the battery packs. With the number of cutbacks we have seen recently for EV production and the projection of cell prices dropping significantly over the next 6 years, it is very likely there is already a lot of capacity now available on the market.

With the recent success Rivian has had negotiating with their supply chains, it probably just makes more sense for them to purchase the cells and concentrate on battery pack configurations while they build out the Georgia plant.

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[vandy1981]

The entire vehicle architecture is getting changed. Again, they've been working on all of this stuff since before they shipped the first customer vehicles, which was already over two years ago. With today's EV technology, you either move quickly or you get left behind.

Lots of hopes and dreams being hung on 2 sentences from an earnings call.

I hope you're right, but be prepared to be disappointed on the 800v issue.

 

[Florida Panhandler]

Chinese battery tech is so much further ahead it isn’t even close. Rivian likely will be sourcing Chinese batteries to bring down costs and improve energy density. In order to make R2 at a competitive price point Rivian will need to partner with a Chinese battery company likely based somewhere in the US. The current Gotion political mess in Michigan will play out deciding where the factory is actually going to be built- but it will be. It could even be built nearby Normal, Illinois.

 

[Donald Stanfield]

Chinese battery tech is so much further ahead it isn’t even close. Rivian likely will be sourcing Chinese batteries to bring down costs and improve energy density. In order to make R2 at a competitive price point Rivian will need to partner with a Chinese battery company likely based somewhere in the US. The current Gotion political mess in Michigan will play out deciding where the factory is actually going to be built- but it will be. It could even be built nearby Normal, Illinois.

What is your proof Chinese battery tech is so far ahead of ours? Chinese auto offerings don't have any standout superior batteries AFAIK. I'd be interested to see what you're basing your statement on.

 

[rob_d]

Many people quickly jump to catastrophize something like this and make it into a bigger deal than it need be. The fact of the matter is it's probably neutral news at worst. When you're scaling a startup you need to make decisions and prioritize where you put your effort and every investment you make needs to be based on calculated bets. When it becomes clear those bets are not going to yield a return it becomes time to cut your losses. It could also be any of the other factors (that I'm not going to repeat) listed above that others have highlighted.

In addition there is a benefit of focus. Given how many different companies are working on battery tech, including their current supplier, why deploy resources for something that you can outsource and potentially get an on-par or better result? Rivian is an automotive manufacturer and while the battery tech is a key component, there are other components that are much more important that they focus on in these early years of development, particularly given the activity in the industry.

People love their quad motor trucks - and guess what, the motors are made by Bosch. Does anybody really care that they're built by another firm? No, in fact most people like that there is a longer warranty with the Bosch setup.

 

[cohall]

This news is generating a surprisingly large reaction for being about 1/10th of one percent of the Rivian workforce.

 

[jjswan33]

Does this layoff give or take credence to 800V coming soon? If the development is complete and Rivian doesn't plan on continuous development in the area, they would certainly need fewer people in this area of expertise.

FWIW battery cell development is very different than 800V pack engineering. Probably unrelated.

 

[Mark_AZR1T]

Vertical integration isn't necessarily the best approach for an OEM on the battery front. It's a highly dynamic segment, which requires significant R&D, so why not let your partners (or others) do the hard yards and reap the benefits in other ways...

Victor just posted this on his LinkedIn account a few minutes ago....



Victor PrajapatiVictor Prajapati • 3rd+ • 3rd+Senior Director Cell Engineering at RivianSenior Director Cell Engineering at Rivian10m • 10m •
Follow

Thanks to the Rivian team, the last three years has been quite the journey, filled with talented , passionate people from a wide variety of backgrounds. The adventure was nothing short of amazing, surrounded by dreams and ambition. Thanks for creating all of the memories, inspiring collaborations, I am excited for the continued success of the company and brand.

Reflecting on next steps to meaningfully contribute to the future of sustainability, looking forward to sharing more on this soon!

 

[R1TS]

BEV battery pack costs are coming down pretty quickly too.

According to BNEF, in 2023, it was $128/kWh on average. Then, predicted to be $113/kWh in 2025 and $80/kWh in 2030.

https://about.bnef.com/blog/lithium-ion-battery-pack-prices-hit-record-low-of-139-kwh/

Hah. That doesn’t seem to affect Rivian in any way considering they’re charging over $1,000/kWh for the Max Pack upgrade.

 

[R1TS]

Vertical integration isn't necessarily the best approach for an OEM on the battery front. It's a highly dynamic segment, which requires significant R&D, so why not let your partners (or others) do the hard yards and reap the benefits in other ways...

Victor just posted this on his LinkedIn account a few minutes ago....



Victor PrajapatiVictor Prajapati • 3rd+ • 3rd+Senior Director Cell Engineering at RivianSenior Director Cell Engineering at Rivian10m • 10m •
Follow

Thanks to the Rivian team, the last three years has been quite the journey, filled with talented , passionate people from a wide variety of backgrounds. The adventure was nothing short of amazing, surrounded by dreams and ambition. Thanks for creating all of the memories, inspiring collaborations, I am excited for the continued success of the company and brand.

Reflecting on next steps to meaningfully contribute to the future of sustainability, looking forward to sharing more on this soon!

Do you think the two most successful EV makers are vertically integrated just by coincidence? Both BYD and Tesla have made vertically integrated battery production an advantage.

Reading this thread, one would think any Rivian decision is a good decision. If the headline was that they hired 20 employees for battery development, instead of laying off 20, the reaction here would have been exactly the same.

 

[Mark_AZR1T]

Do you think the two most successful EV makers are vertically integrated just by coincidence? Both BYD and Tesla have made vertically integrated battery production an advantage.

Reading this thread, one would think any Rivian decision is a good decision. If the headline was that they hired 20 employees for battery development, instead of laying off 20, the reaction here would have been exactly the same.

Rivian is late to the game for vertically intergrated battery tech, at the level an OEM requires to be successful. The cost is too significant for a company in start-up mode at this juncture.

 

[UnsungZero_OldTimeAdMan]

If reporting is accurate and the layoffs are indeed on “cell development”, then it’s not something to worry over (however, very shitty for those affected at this time of the year).

At this juncture of the company’s growth, it’s too early and too soon for them to be looking at in-house production of cells or proprietary cell technology. 800V is more of an architecture/wiring issue; how the cells are used not the make up of individual cells. Rivian is a car company, not a battery company. It makes more sense for them to direct focus on next evolution of R1 and reaching all of their milestones on launch of R2.

Tesla did develop and produce their own cells, but that was a trial run. And that did not occur within first 3 years of car production; well after. And most of the cells in their cars are still sourced from Panasonic and CATL.

Once they have steady production and revenue from R1, vans and R2… then it makes more sense to have in-house batteries (and even then, it makes more sense to have a partner).

 

[mkg3]

The whole thing reads like they were asked to move to GA to continue their efforts and refused.

This often happens when a company relocates engineering staff to be with the manufacturing site in an area that they don't like. As knowledge workers, staff feels strongly that they can find another options where they live.

I would expect hiring in GA as things progress at a later date for the similar work.

 

[UnsungZero_OldTimeAdMan]

When there are so many companies making innovations in battery tech, it makes sense to me that Rivian just buys a great battery product and focuses more on RAN, Software, and future vehicle design.

And service centers.

This isn't a complaint. It's fact that some customers are not getting the support they desire because deliveries are outpacing capacity for post-delivery support. It's just the state of things. Until the assembly line can be 100% flawless, support is needed.

 

[Oldsmobile_Mike]

I googled the guy mentioned in the first paragraph before scrolling down far enough to see the non-paywall text of the article. Fwiw he had this to say on his Linkedin:

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