Rivian’s chief financial officer Claire McDonough shared some very interesting tidbit and excellent insight to the American automaker’s end of year goals and where it is headed in 2024. One juicy piece of information she gave the public during a recent interview is that Rivian is developing a new simplified battery pack structure different from the Standard pack, that will eventually make its way into new R1 EVs. Here’s the latest.
Rivian ($RIVN) is one of the fortunate EV automakers gaining momentum entering Q4, following a year that was still feeling repercussions of supply chain delays and less demand for all electric vehicles… or more demand… it depends who you ask.
The automaker’s Q3 report offered better-than-expected production numbers, alongside continued interest from US consumers. As a result, Rivian has been able to maintain is price points while taking in sales to help continue to ramp up production of EDVs and R1 EVs at its plant in Normal, IL.
Rivian is currently contribution margin positive on both its EDVs and R1 vehicles and its CFO expects the automaker to become gross margin positive in 2024. This insight, as well as countless other interesting updates, came from Rivian CFO Claire McDonough during a recent interview with Dan Levy during Barclays’ 2023 Global Automotive & Mobility Tech Conference.
Rivian developing a new battery simpler than its Standard
We implore you to watch the full 40-minute interview with Rivian’s CFO, but will share some of the key items mentioned because we know you’re busy hitting the couch at 4:30PM because the sun is already down.
McDonough spoke to how Rivian got to where it is today, especially after starting the year on shaky ground, halting its assembly lines to regroup and optimize. Those lines appear to be humming now, as Rivian has hits its stride in production of both its commercial and passenger EVs, introducing new technologies like its new Enduro drive unit – designed and engineered in house specifically for its dual-motor vehicles.
The CFO also mentioned current and upcoming technologies that will help lower production costs and help reach gross margin profitability. For example, Rivian’s Standard battery pack is expected to begin deliveries to customers in 2024. Per the interview:
We’re introducing our Standard battery pack in R1 and that allows us to open up a larger addressable market of consumers for R1 vehicles, given that it’s at a starting selling price in the low $70,000 area. So that’s another important new technology we’ll be introducing into R1 that’s not available today.
This is where it gets good (the 14-minute mark for those watching at home). McDonough continues on, mentioning a new battery in the works that doesn’t appear to have been spoken of publicly in the past. Here’s what she said:
And then we’re introducing a new battery as well, for the R1 vehicles. That very heavily simplifies the battery pack and module structure that we will be building and takes thousands of dollars of costs out, additional mass out, is much easier to manufacturer and build as well, within the vehicles. So that’s another example of some of the new technologies that will be coming into place next year that is a key enabler for the operational efficiency, including cost efficiency, that will get unlocked with these introductions.
What do you think? Sounds pretty promising. With Rivian R1 EVs with the Standard battery pack starting in the low $70k range and a “simplified” pack lowering costs further, could we see a shiny new R1S or R1T in the $60,000s? Combine that with federal tax credits and look out, Rivian could have a best seller on its hands.
When asked about a cadence in 2024, McDonough relayed that Rivian’s assembly lines will go dark for “several weeks” in Q2 to prepare. The CFO says EDV production should ramp back up fairly quickly, but R1 assembly lines will take more time because the number of available options the automaker intends to provide its customers is significantly increasing. Per McDonough:
We’re taking a very methodical approach as to how we’re reintroducing each of the respective variants of R1. I spoke a little bit about the fact that it’s not just one battery pack or one drive unit. We’re introducing three battery packs, two different drive units, a brand new network architecture. So there’s a phase approach and ramp associated with each of those respective variants that will impact not only Q2 volumes, but also Q3 volumes, as each of those new variants are feathered into our production process as a whole.
Simultaneously, Rivian’s CFO says the company will be ramping up new supply chains to support these new introductions within the plant. It’s interesting that McDonough mentions Rivian’s new simplified battery pack, then seconds later, says the automaker is introducing three packs on its assembly lines.
Standard Pack, Large Pack, Max Pack – that’s already three by our count? Where does this new Rivian battery pack fit in and is it replacing one of the other options? Time will tell, but we are certainly going to learn more in Q1 2024 before Rivian shuts down its assembly lines to prepare for these new tech integrations. Stay tuned!
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With the winter in full swing, it’s easy to spend most of the time indoors, but if you’re still looking to scratch that itch to get out and spend more time outside exploring, the XQi3 by NIU is the perfect solution to explore both trails and urban spots. On top of NIU designing the XQi3 with some great handling for off-road riding, it’s also fully street-legal.
It’s always a blast to be out in the trails enjoying nature but for urban areas, there’s usually a lot to explore and luckily the XQi3 is able to be registered as a moped. NIU has an EKHO Dealer collab that enables NIU to sell licensed and registered vehicles to customers directly, making it easy to ride off with a fully compliant street-legal bike.
Before we get into how it handles off-road let’s go through some of the quick specs.
The XQi3 has a top speed of 45 km/h for street-legal use and up to 80 km/h for off-road. Powering the bike is a removable 72v 32ah LG lithium-ion battery, which gives you a max range of 90km on a single charge, of course, that will vary depending on if you are in eco or sports mode, but it’s certainly plenty of range to explore new trails or new sites without having range anxiety, and since it is removable, you’ll be able to charge it anywhere, anytime.
Okay, now that we got some of those specs out of the way, it’s time to dive into one of the most exciting aspects about this bike which is just how great the handling feels while riding off road. This probably won’t be listed on a spec sheet but the wide grippy seat and overall design of this bike makes it very functional as an offroad bike.
NIU made this bike for riders to actually use offroad and one of the obvious signs of that is the stock skidplate that they added for more protection.
While the lightweight feel and torquey motor give a ton of confidence while riding, knowing that the bike is robust enough for this kind of riding is encouraging for trying out new sections that would normally feel intimidating.
And with that extra level of protection dropping the bike is not as worrying as you might think making it easy to pick up the bike, and continue riding just as you would on any other powersports bike.
As for the suspension the XQi3 uses adjustable front and rear KKE suspension that lets you fine-tune the compression, rebound, and preload depending on your size and what kind of riding you intend to do.
While riding through roots and loose dirt the 19-inch off-road tires hold up surprisingly well and with the tread patterns not being too aggressive it’s a great balance between traction and durability since very aggressive tread patterns typically wear out fairly quickly when using them on the tarmac.
And to brake the XQi3 features 203 mm rear disc brakes and 220 mm front disc brakes giving some great braking action for both on and off-road action.
NIU also added some great tech onto the XQi3 which includes seamless app connectivity via Bluetooth letting you unlock a world of features from monitoring your battery and vehicle status to tracking your route history.
In addition NIU is the only company in the category that has the ability to send out OTA updates.
For security the bike uses an NFC card to unlock but can also be unlocked via bluetooth.
And through your controls as well as the display you can navigate to eco or sport mode and you can also use the Ultraboost to get you up to 8000W up from the 3500W of rated power. Through the display you’ll also be able to check your battery level, speed, lap times and more.
For added safety, NIU included an emergency kill switch where if disconnected, the feature will automatically cut off power to the motor just in case of any emergency.
For those unfamiliar with NIU, the brand is now celebrating their 10 year anniversary and with that they’ve announced that the brand will be starting assembly in the US and is soon entering into the powersports segment .
Overall this is a great feeling offroad bike that is fully street-legal and comes with all the requirements to be fully compliant as a road-legal moped. I had a ton of fun exploring
With the XQi3, the premium build quality, long range, and flexibility make it a blast to go out even if it’s the middle of winter.
To check out NIU on socials you can find them @niumobility and for more of their lineup you can check out their website here.
NIU XQi3 gallery
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British telecom provider BT Group has committed to adding 3,500 new EVs to its commercial truck and van fleet over the next two years, bringing its total EV count to 8,000 units and giving it the largest electric vehicle fleet in the UK.
With more than 27,000 in its total fleet, BT Group is one of the largest operators of commercial vehicles of any kind – ICE or electric – in the UK. Now, the company says it has plans to become a fully net zero business by 2031, and looks to electrify all (or nearly all) of its vehicles over the next five years.
Company executives believe the addition of the new EVs (which will see a mix of vehicles deployed from Ford, Stellantis, Toyota, and Renault) will give it “the edge” as it aims to upgrade UK residents to full fiber internet.
“By integrating yet more electric vehicles into our operations, we are taking another significant step towards reducing our carbon footprint and supporting the UK’s transition to a greener future,” said Simon Lowth, Chief Financial Officer, BT Group. “As we extend our full fiber build from 16 million homes and businesses today to 25 million by the end of 2026, having the most efficient, sustainable electric vehicles will give our engineers the edge as they connect customers at pace to our next generation networks.”
As such, political supporters of the ban have been quick to sing BT Group’s praises. “We want to help more businesses decarbonize their operations,” explains Lilian Greenwood, Future of Roads Minister. “(We’ve) extended our plug-in van grant with £120m funding to help roll out more zero emission vans on our roads – part of our £2.3bn to support industry and consumers switch to EVs and make the transition a success.”
Schneider electric semis charging in El Monte, CA; via NACFE.
In a move that’s expected to play a crucial role in supporting the transition to medium- and heavy-duty electric vehicles, $100 million of the Biden Administration’s last-minute $635M payout is headed to Illinois to help build out an electric truck charging corridor.
Tesla is understood to have requested fully 40% of the $100MM award, with Prologis requesting $60 million, Gage Zero requesting $16 million, and Pilot requesting $10 million.
The project will facilitate the construction of 345 electric truck charging ports and pull-through truck charging stalls across 14 sites throughout Illinois, with each of the awarded companies putting up some of its own money to support the infrastructure buildout as well. To that end, Prologis is expected to invest $18 million, Tesla $19 million, Gage Zero $4 million, and Pilot travel stations committing $2.5 million.
“Most of the development has happened on the coasts, and there’s nothing really happening in the Midwest, which is not great for long-haul trucking,” said Megha Lakhchaura, Illinois’ state EV officer. “We think that this hub could be of national importance.”