Electric-vehicle maker Rivian Automotive will benefit from a significant deflation for battery material prices in 2024, finance chief Claire McDonough said at a technology conference.
Prices for raw materials used in batteries surged to a record high on burgeoning demand for EVs, coupled with tight supplies due to the pandemic that were exacerbated by Russia's invasion of Ukraine.
"We'll see some of those (price) impacts in the Q4 timeframe of this year, certainly will impact as we look to 2024," McDonough said at the Goldman Sachs Communacopia + Technology conference.
Earlier on Thursday, market research firm TrendForce said tapering demand for EVs has led to a drop in prices of batteries and a further fall is expected through the year.
Rivian is also ramping up production of its in-house drive unit, which is expected to help reduce dependence on third party suppliers, cut costs and improve production.
Strong demand, a production ramp-up and a clear path to profitability next year have helped Rivian stand apart from peers that have struggled with tough competition, output hurdles and the effects of Tesla's price war.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Sriraj Kalluvila)
