Rivian CFO teases a new cheaper, simplified battery pack structure for R1 EVs coming in 2024

Published

12 months ago

December 5, 2023

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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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What makes a Honda a Honda? Prologue engineers help us find out!

Published

4 hours ago

November 16, 2024

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What makes a Honda a Honda? Prologue engineers help us find out!

On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.

Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.

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Environment

The Eastern US’s first CFI-funded EV charging hub comes online

Published

7 hours ago

November 15, 2024

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The Eastern US's first CFI-funded EV charging hub comes online

CF EV charging — Photo: Joint Office of Energy and Transportation

The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.

The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.

These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.

The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.

Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:

Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.

In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.

The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.

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Environment

Kia’s new low-cost EV4 was just spotted in the US for the first time

Published

7 hours ago

November 15, 2024

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Kia's new low-cost EV4 was just spotted in the US for the first time

Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.

The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.

During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.

Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.

The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.

Kia’s new EV4 is now testing in the US

Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.

The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.

Kia EV4 caught on US streets for the first time (Source: KindelAuto)

Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).

Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.

The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.

Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.