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Investing.com -- Shares of Rivian Automotive Inc (NASDAQ:RIVN) climbed 1.9% following a Bloomberg report that the electric vehicle manufacturer had proactively built a reserve of electric-vehicle batteries, potentially safeguarding against the current trade policy upheaval impacting the automotive supply chain.
Rivian’s strategic move to acquire a significant supply of lithium iron phosphate cells from China’s Gotion High-Tech Co. occurred late last year, prior to the US election. This foresight has provided the company with a buffer against the tariffs introduced by President Donald Trump that are now challenging the industry.
In a further step to secure its supply chain, Rivian collaborated with Samsung SDI (KS:006400) to transport a substantial quantity of battery inventory to the United States from South Korea. These efforts were designed to ensure a steady supply and to mitigate potential complications and costs associated with the tariffs.
The company’s preemptive actions have been well-received by the market, as reflected in the stock’s positive performance. Rivian’s approach to managing its supply chain risks showcases a level of strategic planning that may provide it with a competitive edge in the rapidly growing electric vehicle market.
Investors appear to value the company’s proactive measures to navigate the uncertain trade environment. The ability to maintain production without significant disruption due to supply chain issues is critical in the automotive industry, particularly for a company like Rivian that is focused on the competitive EV sector.
While the company has not publicly commented on these specific supply chain strategies, the market’s response to Rivian’s stock suggests confidence in the company’s ability to manage external pressures and maintain its operational momentum.
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