Rivian's 'US-Centric' Supply Chain Could Offer Edge Amid Trump's Auto Tariffs, Says CEO RJ Scaringe

Rivian Automotive Inc. (NASDAQ:RIVN) founder and CEO RJ Scaringe has said the company boasts a “U.S.-centric” supply chain amid Donald Trump's 25% tariffs on the auto industry.

What Happened: In an appearance on Fox Business, the CEO shared that Rivian's vehicles are manufactured locally in the U.S. at a facility in Normal, Illinois. He went on to describe how Rivian has been focused on building the company's supply chain and ‘production footprint' in the country.

Rivian manufactures major components of its vehicles, like the motors and the battery, domestically. However, Scaringe pointed out that the aluminum and steel supply chain for the company is a ‘mix'.

He then called the automotive supply chain ‘complex' with lots of factors at play. It's worth noting that Scaringe reiterated Rivian was working on alternatives in light of the tariffs, but it could be difficult.

Speaking on the restrictions surrounding the exports of rare earth metals from China, Scaringe said it is a challenge for all electric vehicles. ‘In terms of the processing of the materials, that happens almost exclusively in China.'

Rivian currently sells the R1S, R1T, as well as Fleet vehicles, the Delivery 500, and the Delivery 700. The company has the Rivian R2 and the R3 in the pipeline. 

Why It Matters: Scaringe's comments come at a time when the U.S. auto sector is grappling with uncertainty about the Trump administration's tariffs.

The U.S. has seen growth in the domestic EV sector, with more drivers now willing to adopt EVs as their primary vehicles.

However, analysts maintain that the tariffs could hurt U.S. companies like Rivian, General Motors Co. (NYSE:GM), and Ford Motor Co. (NYSE:F) amid declining demand and increasing costs.

There could be a silver lining amid the uncertainty as Trump noted that he may provide some relief to a few auto manufacturers who “need a little bit of time” to acclimate themselves to the new tariff environment. Trump's comments led to an increase in the value of auto stocks.

Price Action: RIVN stock currently trades for $11.91 on the NASDAQ, according to Benzinga Pro data.

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