Comparing Tesla and Rivian isn’t entirely fair. Tesla, driven by one of the world’s most influential men, is the largest producer of battery electric vehicles (BEVs) globally. Rivian, on the other hand, is a nascent California-based start-up struggling financially with each vehicle sold. Yet, Tesla once faced similar hurdles. Rivian is now seen as a beacon of hope in the EV industry, an image unblemished by the controversies associated with Tesla.
Welcome to the Friday edition of Critical Materials, your daily digest of news influencing the realms of electric vehicles, software-defined vehicles, and autonomous driving.
In today’s issue: Contemporary Amperex Technology Limited (CATL), the leading producer of lithium-ion batteries, plans to raise $1.5 billion for expanding its global supply-chain network, and Volkswagen Group’s battery subsidiary PowerCo has sealed a deal with QuantumScape to license its solid-state lithium-metal technology for mass production.
30%: Disillusioned Tesla Buyers Turn to Rivian
Assessing Tesla fans, I’d categorize them into two groups: The first admires Tesla for pioneering groundbreaking EVs that leave no environmental footprint. These enthusiasts can distinguish themselves from the fanatics obsessed with stock prices and Tesla’s Full-Self Driving (FSD) system, which still has a long way to go to live up to its name.
Comparing Tesla and Rivian isn’t straightforward, but Rivian owners share the passion for EV technology and love their vehicles without the baggage of conspiracy theories and cultural controversies.
Here’s an insight from Bloomberg on Rivian’s rise as the anti-Tesla from the viewpoint of someone owning both brands:
Hilbert didn’t have high expectations for his new Rivian—he bought it mainly for family use—but he’s been pleasantly surprised. The electric truck lacks extravagant features and doesn’t aim to be a future “robotaxi.” But it offers a thrilling 0-60 mph in three seconds, handles well for its size, and never needs gas.
Currently, Hilbert is a key figure in a passionate Rivian community, actively sharing about the brand on social media. Many in this community are disenchanted Tesla owners, disappointed by Musk’s antics. Bumper stickers like “I bought this before we knew Elon was crazy” are becoming more common.
Unlike Musk’s supporters, Rivian enthusiasts are earnest, focusing on practical discussions rather than political agendas. They debate the best off-road tires and accessories but steer clear of divisive topics.
Admittedly, Rivian has yet to achieve a fraction of Tesla’s success and faces an uncertain future. Yet, the brand is in better shape than ever. Issues with its R1S and R1T models have been addressed, and Volkswagen’s planned $5 billion investment validates Rivian’s potential.
Additionally, Rivian aims to turn its first profit by the fourth quarter, thanks to streamlined production in its Illinois facility and upgraded models. With $6 billion in cash as of March 2024 and the backing of VW Group, Rivian is on an upward trajectory.
If the R2 crossover and R3 hatchback come to fruition by 2026 or 2027, choosing between Tesla and Rivian might become much easier.
60%: CATL Eyes $1.5 Billion to Expand Overseas
CATL Qilin – third-generation cell-to-pack (CTP) battery system
The global geopolitical climate around EV production is revealing underlying protectionist tendencies, especially between China and the West. Both the U.S. and EU have imposed tariffs on Chinese electric car imports, with the U.S. also enforcing stringent battery sourcing regulations.
Experts agree that China’s lead in battery technology means Western countries could benefit from cooperation. CATL, the world’s foremost battery maker, is strategizing to expand its foreign operations while navigating China’s investment regulations.
According to the Financial Times:
CATL is in talks with various stakeholders, including sovereign funds and European manufacturers, for investments. China’s strict capital controls mean overseas investments above certain thresholds require lengthy bureaucratic approval.
CATL’s $1.5 billion fund, managed by Hong Kong-based Lochpine Capital, aims to support its overseas ventures while bypassing some investment barriers.
Deals are already in place with Stellantis for a European battery plant and with Ford for a similar venture in Michigan. A local supply chain could significantly reduce EV costs.
90%: Volkswagen’s Future EVs to Feature Solid-State Batteries
Imagine an EV battery with longer range, faster charging, and enhanced safety. Solid-state batteries show such promise but are currently expensive to produce. Automakers, however, are optimistic about overcoming these cost challenges.
Volkswagen’s battery subsidiary PowerCo has inked an agreement with QuantumScape for mass production of solid-state batteries. This could redefine the EV market.
QuantumScape’s press release states:
The partnership aims to quickly scale up production to meet global demand, combining QuantumScape’s advanced technology and PowerCo’s manufacturing capabilities.
Solid-state batteries are lighter, more energy-dense, and safer than traditional batteries. Automakers like Toyota, Nissan, and Hyundai are also heavily invested in this technology.
100%: How Important Is Brand Reputation to You?
When buying an EV, practical factors like cost, range, and reliability are crucial. However, does brand reputation also matter to you? Can you separate Tesla’s vehicles from Elon Musk’s controversies, or do you prefer a brand more aligned with your values?
Share your thoughts in the comments below.
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William Kouch, Editor of Automotive.fyi
