The automotive industry has been affected by the computer chip shortage, but Rivian CEO RJ Scaringe warned that a shortage of electric-car batteries could happen soon.
According to a report from The Wall Street Journal, Scaringe said that Semiconductors are a small appetizer to what we are about to feel on battery cells over the next two decades. The Rivian CEO made the comment while giving reporters a tour of the plant.
Over the past two years, the chip shortage has led to companies cutting production and features. AlixPartners estimated in September that the chip shortage would cost the automotive industry over $210 billion.
There is a critical shortage of EV batteries and the metals required to make them, as well as a shortage of electric cars.
All the world's cell production is less than 10% of what we will need in 10 years, according to The Journal.
Rivian's strategy for securing battery cells is to build up its capacity to create its own battery cells, as well as diversify its suppliers, according to Scaringe.
The Rivian CEO is not the only one who is concerned about the future of EV battery supplies. Musk has warned that battery supplies could become a major issue.
Musk said earlier this month that he was considering mining and refining. After a deal to buy a lithium mining company fell through,Tesla secured its own rights to mine in Nevada.
Benchmark Mineral Intelligence data shows that the price of the metal has more than doubled in the past year, as the pace of production lags behind demand for electric cars. nickel prices hit their highest level in 20 years last month.
An estimated 18.7 million electric cars will be in short supply by 2029 due to a lack of battery cell production, according to a report released last year by the Center for automotive research.
The construction of the cell factories in the US, Europe, and China takes time, as does the material chains for anodes and cathodes, ranging from lithium, cobalt, nickel and manganese.
As a new player in the auto industry, the company has had difficulty securing computer chips. The production targets have been cut in half.
According to a report from Axios, Anthony Scaringe said that he was on the phone with the CEOs of the chip suppliers every day.
The R1T truck and R1S SUV were Rivian's first models. Rivian had a blockbuster IPO last year that briefly valued the company over Ford and General Motor, but since then the share price has fallen.
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