Electric vehicle startup Rivian says the Russian invasion of Ukraine is an additional source of "disruptions to and delays" in its operations to the ongoing pandemic and inflation.
Rivian is one of the first US automakers to cite the war in Eastern Europe as a risk and a headwind for its operations, noting that the military conflict in Ukraine is adding to supply chain pressures and costs.
In its annual 10-K SEC filing released March 31, Rivian also listed the conflict as a factor in higher component cost, including battery metals which have risen "considerably." In total, Rivian mentioned the Ukraine conflict 13 times in the filing.
"COVID-19, including associated variants, and the recent conflict in the Ukraine, have caused disruptions to and delays in our operations, including shortages and delays in the supply of certain parts, including semiconductors, materials and equipment necessary for the production of our vehicles, and the various internal designs and processes we have adopted in an effort to remedy or mitigate impacts of such disruptions and delays have resulted in higher costs."
Gallery: Rivian Manufacturing Plant In Normal, IL
This is the first time the company has made an explicit reference to the war as a risk factor or headwind, with Rivian previously acknowledging rising commodity prices and ongoing parts procurement challenges. In the filing, Rivian also mentioned major increases in the cost of key metals used in the manufacturing of batteries, although it didn't explicitly link those price pressures to the war.
"There have been very sizable increases in recent months in the cost of key metals, including lithium, nickel, aluminum, and cobalt with volatility in pricing expected to persist for the foreseeable future."
The Irvine, California-based company has struggled to ramp up production of its R1T electric pickup truck. Rivian recently gave a production forecast of 25,000 vehicles for 2022, half of what the plant in Normal, Illinois, is capable of making.
Earlier this month, Rivian announced it would raise prices on its R1T and R1S electric vehicles, including for existing orders, only to make a U-turn days later and exclude existing reservation holders from the price hikes.