LG·SK Followed by Samsung Battery Preparing to Target US Market

Samsung SDI to Supply Batteries to US Electric Vehicle Startup Rivian
Supply Timing and Models Not Announced
Summer Launch Pickup Trucks and SUVs
May Be Used in Amazon Electric Vans
Samsung SDI to Expand US Customer Base

[Asia Economy Reporter Choi Dae-yeol] Samsung SDI has agreed to supply batteries to the American electric vehicle startup Rivian. Rivian, an electric vehicle maker that has attracted major investors such as Amazon, Ford, and BlackRock, is preparing for mass production within this year. For Samsung SDI, which has mainly supplied European markets so far, this presents an opportunity to increase its customer base in the United States.

RJ Scaringe, CEO of Rivian, stated in a press release on the 12th (local time), "We look forward to combining Samsung SDI battery cells' performance and reliability with our energy-dense module and pack design." Although collaboration rumors between the two companies have been circulating, this is the first official announcement. A Samsung SDI official also said, "While the factory that will produce the batteries for Rivian has not been finalized, it is true that a supply contract has been signed."

Although the two companies have not disclosed specific supply timing, scale, or applicable models, it is expected that Samsung batteries will be used in pickup trucks or sport utility vehicles (SUVs) scheduled for release this summer. There is also a possibility that the batteries will be used in electric vans ordered by Amazon for delivery purposes in some parts of the United States. Amazon is reportedly set to receive 100,000 of these electric vans by 2030.

Rivian pickup truck exhibited at last year's CES event. The electric model is equipped with Amazon's AI platform Alexa.

Samsung SDI ranks among the world's top five electric vehicle battery makers and currently operates battery factories only in South Korea (Ulsan), China (Tianjin and Xi’an), and Europe (Hungary). Electric vehicle batteries are manufactured through the process of 'cell → module → pack,' and the company's factory in Auburn Hills, USA, supplies battery packs, which is unrelated to the Rivian supply deal, according to the company. However, with the expansion of electric vehicle adoption in the U.S., the need for a unified local production facility is increasing, making it highly likely that Samsung SDI will establish a new factory in the U.S.

Kang Dong-jin, a researcher at Hyundai Motor Securities, explained, "Due to the United States-Mexico-Canada Agreement (USMCA), the importance of securing battery production facilities within the U.S. has increased, and to receive tariff benefits, the regional value content (RVC) requirement of 75% must be met by 2025. Securing local battery factories is essential for electric vehicle sales in the U.S." Samsung SDI, when asked about additional facility investments at an investor briefing earlier this year, only gave a general response, stating, "We will carefully review new bases."

The U.S., along with China and Europe, is one of the world's three largest electric vehicle markets. Since President Joe Biden took office, the country has committed to expanding electric vehicle adoption as part of its green initiatives. While the top two local battery companies, Panasonic and LG Energy Solution, have solidified collaborations with Tesla and General Motors (GM), respectively, global automakers are increasingly establishing electric vehicle factories, keeping the battery industry busy. LG Energy Solution and SK Innovation, having resolved years of battery disputes, are also investing billions of dollars in local factories and expanding facilities in the same context.