Electric vehicle maker, Rivian (NASDAQ:RIVN) made an appearance at the Goldman Sachs Communacopia + Technology conference Thursday where the company’s finance chief Claire McDonough shared an optimistic outlook for Rivian's future, highlighting an expected significant decrease in battery material prices in 2024.
A surge in demand for EVs has lead to record-high prices for raw materials used in batteries. This increase in prices is exacerbated by the pandemic-induced supply constraints and further escalated 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.
According to comments made earlier by market research firm, TrendForce, a decrease in demand for electric vehicles (EVs) has resulted in declining battery prices, and they anticipate further price decreases throughout the year.
Furthermore, Rivian is actively increasing the production of its in-house drive unit, a move anticipated to diminish reliance on external suppliers, lower expenses, and enhance overall production efficiency.
Shares of RIVN are up 0.35% near end of day trading Thursday.