DA Tech receives first PO from US Rivian... "Aiming to build 100GWh own battery factory by 2025"

[Asia Economy Reporter Hyungsoo Park] As the domestic stock market heats up with anticipation of Rivian's November listing on the U.S. Nasdaq as a "Tesla rival" in the electric vehicle market, DA Technology has been selected as Rivian's battery collaboration partner.

DA Technology announced on the 25th that it has signed a supply contract for battery manufacturing equipment with Rivian. Following the supply contract, DA Technology received the first PO (purchase order) from Rivian on the 22nd (local U.S. time, the 21st) and has begun preliminary work for initial delivery.

DA Technology and Rivian have agreed to sequentially collaborate on establishing facilities for mass production stages. According to the first initial order contract, DA Technology will supply Rivian with a pilot line to verify battery manufacturing processes and materials, as well as notching and stacking equipment for the secondary battery assembly process. Following this first PO volume for trial production, the two companies will gradually expand full-scale orders starting in November.

In particular, Rivian is actively pursuing a battery internalization strategy, which is expected to bring mid- to long-term benefits to DA Technology. Rivian has stated that in order to target the electric vehicle market, in-house battery manufacturing will be key, and it presented plans for self-production of battery cells in its IPO (Initial Public Offering) filing submitted to the U.S. Securities and Exchange Commission (SEC). According to Rivian, considering the expansion of electric vehicles and the impact on performance and price, it plans to build internal capabilities across the entire value chain, including batteries.

Rivian aims to build its own battery factory with a capacity of 100 GWh by 2025. One GWh equals 1 million kWh, and considering that the typical capacity of an entry-level electric vehicle battery is 60 kWh and a high-performance electric vehicle is 90 kWh, Rivian’s planned battery production scale corresponds to producing approximately 1,007,000 entry-level vehicles or 1,002,000 premium vehicles. Rivian plans to invest about $8 billion (9.5 trillion KRW) by the end of 2023 to expand electric vehicle production capacity, produce batteries in-house, and build a charging network.

A company official said, "Rivian demanded battery manufacturing records, technical capabilities, and market competitiveness that match Rivian electric vehicle specifications during the partner selection process," adding, "We underwent multiple verification processes with strict evaluation criteria."

He further explained, "DA Technology was selected as Rivian’s partner due to its independent technological capabilities, recognized through over 15 years of diligent experience and know-how in secondary battery manufacturing and assembly processes as a first-tier vendor for LG Energy Solution."

He stated, "Due to confidentiality agreements with Rivian, we cannot disclose specific amounts or detailed terms," but emphasized, "We will inform the public through disclosures according to additional orders and collaboration progress."

He added, "By actively participating in Rivian’s battery internalization project, we will not only enhance corporate value but also strengthen the competitiveness of K-battery."

Rivian is an electric vehicle startup founded in 2009 by MIT graduate engineer RJ Scaringe. It gained significant attention last September by launching the first electric pickup truck, the R1T, surpassing Tesla and GM. The world’s largest e-commerce company, Amazon, invested $700 million and pre-ordered 100,000 Rivian delivery electric vehicles for its carbon zero project by 2040, earning the nickname "Amazon electric vehicle."

Rivian has attracted approximately $10.5 billion (about 12.3 trillion KRW) in large-scale investments from global companies such as Ford and is regarded as the "second Tesla" and a "Tesla rival." Rivian is scheduled to be listed on the New York Stock Exchange at the end of next month, with a market capitalization expected to reach $80 billion (about 95 trillion KRW) after listing.