This Week in EV: Domestic Production

We kick off this week with a few bits of news from Rivian who have announced that the next-generation batteries for its R2 vehicles will be produced domestically in the US by LG Energy Solution. The R2 is Rivian’s more affordable electric SUV starting at $45,000 and will feature these batteries, which will be called "4695" due to their larger dimensions compared to Tesla's 4680 cells. The move to manufacture batteries in the US aims to comply with tax credit requirements outlined by the Inflation Reduction Act although with the new government we’ll have to wait and see if the credit will still be available when the R2 launches in 2026. Initially, the cells will be produced at LG's plant in Queen Creek, Arizona, before the R2 enters production. The next-gen R2 battery packs are expected to be lighter, less complex, cheaper to produce, and more efficient in assembly compared to the current R1 packs.?

Sticking with Rivian the company has officially launched their joint venture with Volkswagen, 'Rivian and VW Group Technology, LLC.' It had previously been reported that VW would invest $5 billion but this is now $5.8 billion due to the expectation of selling more vehicles. This partnership aims to co-develop next-generation electrical/electronic (E/E) architecture and software for software-defined vehicles (SDVs). The collaboration will leverage Rivian's expertise in flexible E/E architecture and Volkswagen's extensive automotive experience to create a modular system adaptable across various vehicle types and markets. The first vehicles utilising this technology are expected to launch in 2027, potentially including models from Volkswagen's recently revived North American brand, Scout, and an electric Porsche SUV. The joint venture will be headquartered in Palo Alto, California, with additional sites planned in North America and Europe.

Sticking with VW's software subsidiary, Cariad, in collaboration with TomTom, has developed a navigation system tailored for electric vehicles. This system continuously monitors the vehicle's remaining range and dynamically adjusts routes as needed. It incorporates real-time data on traffic conditions, charging station availability, and driving habits to suggest optimal charging stops. The navigation solution is built on TomTom's cloud-native software, ensuring seamless operation even without a data connection by switching to onboard software. The system is set to debut in Audi's electric models, with plans to extend it across other VW Group brands. This does highlight an interesting challenge for VW going forward as how Cariad and the Rivian joint venture work alongside each other.

Monta has teamed up with Tesla to launch a new charging reimbursement solution for corporate EV fleets across Europe and the UK. This integration allows companies to reimburse employees for at-home charging of their company EVs, using Tesla’s Wall Connector. As corporate fleets rapidly transition to electric vehicles, this system replaces traditional fuel cards and simplifies home charging for employees. Monta’s CEO, Casper Rasmussen, highlighted the increasing demand for such solutions, with six in ten new cars being company vehicles.

Don't forget substack subscribers get more This Week in EV every week