Rivian (RIVN) made a ‘secret’ deal with the UAW: Here’s what that means for the EV maker
Rivian (RIVN) has reportedly agreed to a “secret” deal with the UAW as it works toward its next growth phase. The new agreement is contingent on the EV maker reaching profitability. Here’s what you need to know.
What the private UAW deal means for Rivian
Under the confidential deal, Rivian would opt for a neutral stance on unionizing efforts at its Normal, Illinois, manufacturing plant.
According to sources close to the matter (via Bloomberg), the deal is based on Rivian hitting specific targets, including reaching profitability. The private agreement could pave the way for the UAW to unionize workers in Normal.
Rivian has yet to post a quarterly profit on an adjusted basis. The EV maker posted a net loss of $1.1 billion in the third quarter, down from the $1.34 billion loss in Q3 2023. CFO Claire McDonough reiterated that Rivian is still on track to reach a positive gross profit in the fourth quarter.
CEO RJ Scaringe said the company is seeing “meaningful progress” on reducing costs after shutting down its Normal plant in April for upgrades.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | Q4 ’23 | Q1 ’24 | Q2 ’24 | Q3 ’24 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 | $38,784 | $32,705 | $39,130 |
The secret UAW deal also reportedly helped Rivian secure its recent $6.6 billion conditional loan from the US Department of Energy. The loan will help fund Rivian’s new manufacturing plant in Georgia, where it will build its more affordable R2. However, the loan is also based on the EV maker reaching certain financial metrics and other requirements.
Ramping EV production
Rivian builds its current R1S SUV and R1T electric pickup in Normal with plans to begin R2 production in 2026. Although the smaller, more affordable EV will initially be built in IL, Rivian plans to significantly expand output with the new plant in GA.
The EV maker expects to build between 47,000 and 49,000 vehicles this year. After upgrading the facility earlier this year, Rivian said it can build up to 150,000 EVs a year in Normal.
When R2 launches in 2026, Rivian expects annual production capacity to be around 215,000, 155,000 of which will be the R2. After its GA plant opens, Rivian expects to add another 400,000 to that number.
According to Bloomberg, Rivian has been “a longtime target for the UAW.” If the deal goes through, workers in Normal would have more say over matters such as pay and working conditions.
The UAW targetting Rivian is part of its broader plans to unionize the EV industry. As more details unfold, the deal could mark a significant step in its efforts, potentially setting Rivian apart from rivals like Tesla.
Last month, Rivian and Volkswagen officially launched their new joint venture, “Rivian and VW Group Technology, LLC.” The partnership will use Rivian’s expertise to develop a next-gen EV architecture and “best-in-class software” for both companies’ future EV models.
Scaringe said the collaboration is a “landmark development for the industry.” Volkswagen plans to invest up to $5.8 billion in Rivian and the new JV, which Scaringe calls “a meaningful financial opportunity.”
Rivian’s stock is up around 33% since reporting Q3 earnings on November 7, but share prices are still down 37% in 2024.
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The global shift to electric vehicles (EVs) is accelerating, but McKinsey’s latest report warns of significant strain on the supply chain for critical battery materials by 2030.
EV sales are expected to jump from 4.5 million units in 2023 to 28 million annually by the end of the decade. This unprecedented demand will put pressure on the availability of essential materials like lithium, high-purity manganese, and graphite.
While lithium iron phosphate (LFP) batteries reduce reliance on scarcer materials like cobalt and nickel, they still depend heavily on lithium, manganese, and graphite. The shift to LFP batteries offers some relief but does not eliminate the imbalances in the supply chain, highlighting the need for continued focus on securing sustainable sources.
Adding to the challenge, upstream raw material mining and refining these materials account for about 40% of an EV battery’s total emissions. McKinsey’s report emphasizes that reducing emissions in these processes is critical.
“Sourcing materials from supplies committed to low-emission fuels and power sources could cut emissions by as much as 80% in mining and refining phases. This needs to be paired with a strong focus on cost reduction given the current profitability pressure in the battery industry,” said Raphael Rettig, partner at McKinsey.
Smaller but essential materials, such as high-purity manganese, also face growing challenges. Currently, manganese contributes around 4% of emissions in a typical lithium-nickel-manganese-cobalt (LI-NMC) battery. However, as LFP batteries gain popularity and larger materials like lithium and nickel are decarbonized, manganese’s relative emissions intensity could nearly double without targeted strategies to address the imbalance.
Toyota’s recent $4.5 million grant from the US Department of Energy to develop more sustainable EV batteries is a step toward addressing these challenges. However, it’s clear that solving the broader supply chain issues will require a collective effort from the entire industry to balance demand with sustainable practices and minimize emissions. The path forward will define the EV industry’s ability to meet climate goals while scaling up production.
Read more: Toyota gets $4.5M DOE grant to boost EV battery sustainability
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Hyundai’s new IONIQ 9 electric SUV already looks like it’s from the future, but the flagship Calligraphy trim stands apart from the other options. The top-tier model gains added tech, features, and sleek trim-exclusive design elements. A new all-black model was spotted in California, giving us a better look at the top-tier trim on the road.
Hyundai IONIQ 9 Calligraphy spotted in all-black
The IONIQ 9 is Hyundai’s first three-row electric SUV, a “living room on wheels,” if you will. Last month, Hyundai unveiled the larger electric SUV at the LA Auto Show.
Featuring Hyundai’s new “Aerosthetic” design, you can miss the IONIQ 9’s futuristic style. The streamlined roof and flush exterior design provide a spacious, “lounge-like” interior. It even includes added elements like Parametric Pixels integrated into the front LED lights and bumper.
The IONIQ 9 will be available in S, SE, SEL, Limited, and a flagship Calligraphy trim options. Hyundai confirmed the top-tier model will have an exclusive Calligraphy Design package with 21″ wheels.
Other trim-specific features added to the Calligraphy model include a microfiber suede roof trim, a premium cargo sill plate, a two-tone leather-wrapped steering wheel, a 10″ Head-Up Display (HUD), and a full-display mirror FDM with HomeLink.
Although Hyundai has shown the flagship SUV off in public, a new video from KindelAuto shows a preproduction IONIQ 9 Calligraphy in all-black testing in the US.
Earlier this month, an IONIQ 9 model was spotted testing in public ahead of deliveries. We also saw what appears to be an XRT trim with off-road upgrades caught in Korea last week.
At 199.2″ long, 78″ wide, and 70.5″ tall, the Hyundai IONIQ 9 is slightly smaller than the Rivian R1S (201″ long, 82″ wide, 77″ tall). It’s roughly the size of Kia’s EV9.
Hyundai’s electric SUV, which is powered by a 110.3 kWh battery pack, has an EPA-estimated range of 335 miles, or 620 km, on the WLTP cycle.
Hyundai’s three-row electric SUV will be available in the US and Korea in the first half of 2025. Following that, it will roll out to global markets like Europe. It will be built alongside the updated 2025 IONIQ 5 at Hyundai’s new manufacturing plant in Georgia. Prices will be revealed closer to launch.
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Environment
Podcast: Tesla self-driving computer failure, Cybertruck issues, Honda/Nissan merger, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s issues self-driving computer failure, Cybertruck is also having some problem, Honda/Nissan merger, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):
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