Rivian founder and CEO RJ Scaringe discusses the impact of import tariffs on the “Craman Countdown.”
Rivian founder and CEO RJ Sculling discussed Trump administration tariffs and how electric vehicle (EV) makers are navigating them on Tuesday.
Scaringe told host Liz Claman that consumers have “a lot of questions” about “what will happen” about the pricing and availability of U.S. vehicles amid President Donald Trump’s tariffs, while Libian is “trying to navigate as thoughtfully as possible.”
The president announced 25% tariffs on passenger cars, mild trucks and certain major auto parts imported later last month. They are one of many taxes on imports that Trump has announced since he took office, including steel and aluminum.
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Electric vehicle startup Rivian Automotive Inc. is suing the main supplier of seats. (Justin Sullivan/Getty Images/Getty Images)
Scaringe said the Rivian EV, including the second-generation R1, where he appeared during “Claman Countdown,” is being manufactured at a facility in Normal, Illinois.
“Of course, we’ve been very focused on building our production footprint here in the US. Of course, all the technology is being developed here too,” he told Kraman.
When asked where Libian steel and aluminum came from, Sculling said it was a “mix.”
“One thing about cars is that the supply chain is very complicated. For example, there are hundreds of suppliers who are supplying parts from headlights, towing hooks and tires or structures under the skin, and not only are the suppliers supplying suppliers, but the suppliers have suppliers, so they have suppliers. “In our case, it’s a mix. Given the new environment from a tariff perspective, we’re really working hard to see what can change, but they’re difficult to change.”
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He admitted that Libian is not completely escaping Trump’s tariffs, but said EV makers have a “very US-centric supply chain.”
RJ Scaringe said: “Moment: We Are In: Moving the Ways of the Planets, Moving, Thinking and Change” was held on March 11, 2025 in Austin, Texas, during the SXSW Conference & Festival in Downtown Hilton Austin, and during the SXSW Conference & Festival. (Amy E. Price / SXSW Conference & Festivals & Getty Images / Getty Images)
“We’re building a big piece here,” he told Kraman, citing motors and batteries as examples. “We’ve developed software stacks, electronics, but there are a lot of components that come from the global supply chain.”
Scaringe said, “Both come from suppliers in the US, but there’s a huge amount of content from suppliers elsewhere.”
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In an interview, she also pointed out that Libian is expanding its Illinois factory and asked Sculling if he was in touch with the White House, which is pushing to boost manufacturing in the US with tariffs and other measures.
“When we think about tariffs, of course, the 25% car rate hit everyone,” he said. “We rely on supply chains with many components coming from other countries throughout the tier. And importantly, what we see in terms of trade restrictions and rare earth metals from China is a real challenge for electric vehicles.”
China recently imposed restrictions on exports of certain rare earth metals and magnets from the country.
Workers will assemble a second-generation R1 vehicle on June 21, 2024 at the manufacturing facility of electric car manufacturer Libian in Normal, Illinois. (Reuters/Joel Angel Juarez/File Photo/Reuters)
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“Essentially, all electric vehicles on the road today use what is called permanent magnet motors,” explained Scaringe, noting that such magnets “usually use some rare earth metal.”
He said that rare earth metals can be found in many places worldwide, but “from a material processing perspective, it mostly occurs in China.”
Scaringe also spoke about the EV industry and what it takes to increase its share of the US vehicle market. According to Cox Automotive, EVS accounted for 8.1% of vehicle sales in the US in 2024.
“I think the majority of this is giving customers options,” he said. “If you’re considering buying an electric car that costs under $50,000 today, there are very few very convincing options, so we’ve seen Tesla, which has a very important market share for a long time, with over 50% of its market share.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| rivn | Rivian Automotive Inc. | 11.91 | -0.12 |
-1.00% |
He said that among EVs there is a need for “various form factors, different features, different brands, styling and aesthetic treatments.”
Libian currently manufactures R1S SUVs, R1T pickup trucks and commercial electric vans. Also, there are R2 and R3 in the pipeline.
