Battery shortages will be a much bigger problem than chip shortages

RJ ScaringeCEO of Rivian, one of the new electric car manufacturing companies, warns of a future shortage of batteries and their components. So big that it would make the chip supply issues we’ve been experiencing starting in 2020 look like a little joke.

Scaringe explained this in an interview with the wall street journal. “A small imbalance in the demand for semiconductors has led to compulsive buying by some multinationals which has resulted in a crisis that continues to affect many industries, especially the automotive industry. The same will happen with batteries but exponentially more serious.”

Part of the reason, according to the CEO of Rivian, this is because the imbalance in the battery industry is getting worse. This, while demand for electric cars is growing more than expected, creates a future shortage of batteries.

Some like You’re hereThey were able to predict the future. Nine years ago, they opened the Nevada Gigafactory dedicated 100% to battery manufacturing. At the time, this decision was considered by many experts to be suicide. Not only external, but also some senior managers of panasonic, the company they partnered with to build the plant. Musk still managed to secure the joint investment.

Today, many executives at the helm of automakers transitioning to electric mobility would undoubtedly give an arm or a leg for having had the vision to create a battery factory nearly a decade ago to avoid future shortages.

Tesla has not only secured raw materials and components from its suppliers, but has also started manufacturing its own batteries to meet the demand they will have for years to come.

According to RJ Scaringe, they approach the problem the same way, remaining agnostic of battery suppliers and sourcing cells from different companies.

“Many automakers, with decades of experience running large global production lines, find themselves in a difficult situation. They are unable to obtain materials for manufacturing electric cars,” said- he explained in another interview, this time for CNBC.