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| In this file photo Rivian's R1T, an all-electric pickup truck is displayed at the Amazon booth during CES 2020 at the Las Vegas Convention Center on January 7, 2020 in Las Vegas, Nevada. AFP-Yonhap |
By Kim Bo-eun
The electric vehicle (EV) industry is keenly observing U.S. electric truck manufacturer Rivian's moves for an initial public offering (IPO), given the startup's stock market debut will propel its business and expand opportunities for suppliers. Suppliers such as EV battery maker Samsung SDI could potentially benefit.
The company announced the plan, Aug. 27, local time, but did not offer details such as the timing of the IPO or corporate valuation aim. Bloomberg reported Rivian is seeking to be listed by November, with a valuation of $80 billion.
In this case, Rivian's corporate value would exceed that of GM and Ford. The company is backed by investments from Amazon and Ford, and is considered to be the next Tesla. Rivian has received 100,000 delivery van orders from Amazon. The company, focused on EV trucks and SUVs, is set to launch models within this year.
Rivian CEO RJ Scaringe said in April that Samsung SDI would be supplying batteries for its EVs. An IPO would accelerate the company's business and Samsung SDI's battery supply volume could also grow.
A report surfaced of Rivian preparing to produce its own batteries, but industry views are that carmakers will have to rely on battery manufacturers for the time being, considering the fact that battery development takes a long time.
"Carmakers will not be able to develop EV batteries in a short time span, given that battery manufacturers spent decades on development. Battery makers won't be willing to share key battery technology for clear reasons," an industry official said.
Given the probability that Rivian would continue to be receive battery supplies from Samsung SDI for the time being, the Samsung affiliate could build an EV battery plant close to Rivian's factory. Samsung SDI is seeking to construct an EV battery cell plant in the U.S. to capture opportunities in the next big EV market. At present, the Samsung affiliate only has a battery pack plant in Michigan. Rivian has a plant in Normal, Illinois. Senator Dick Durbin said in August that Samsung SDI officials were visiting the state to discuss possible investments for a plant there. Building a battery cell plant near a carmaker's factory presents multiple advantages such as saving logistics costs.
But there is still a chance that Samsung SDI could partner with another carmaker. Reports also stated Samsung SDI officials visited Detroit for talks with the world's fourth largest auto group Stellantis, which has brands including Jeep and Fiat under its arm. It has an SUV plant in Detroit. Stellantis has unveiled a plan to build a battery factory in North America as it makes the switch to electric vehicles.
Samsung SDI may set up a joint venture with either of the auto makers or set up a battery cell plant independently. The company has maintained that it is "reviewing multiple possibilities."
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