Tesla sues Rivian again for stealing the battery secrets of Tesla’s battery. Initially, Tesla accused Rivian of stealing “highly proprietary” technology and poaching its employees that are related to batteries. Batteries being important components of the electric vehicle, it would be stealing the company’s core secrets.
Around 14 months ago, Tesla filed a case against Rivian. In the recent case, Tesla states that despite filing a lawsuit, Rivian didn’t stop poaching employees and getting confidential information. This time, Tesla states that Rivian was “caught- red-handed” while doing the act. Tesla’s next-generation battery core technology was being taken by Rivian according to the lawsuit. And Tesla notes that batteries are the “most essential element for any electric vehicle.”
Furthermore, Tesla noted, “Now apparently under pressure from investors after nearly a dozen years without producing a single commercial vehicle, Rivian has intensified its unlawful efforts,”
Tesla batteries are very crucial, especially considering their upcoming 4680 battery cells are known to be game-changers in the industry. Known to help companies like Xpeng Motors to launch their own EVs, Tesla is also known to be careful about sharing information. It was the case for a long time, from Model S 18650 battery cells to Model 3 and Y 2170 battery cells.
Rivian battery strategy
Recently Rivian announced its plans to have in-house battery cell production. Rivian’s current batteries are provided by Samsung SDI. The 2170 cells by Samsung SDI are to be used in R1T and R1S. Rivian specifically didn’t mention battery strategy, except for the recent announcement regarding manufacturing. It is unclear if the Tesla 2170 battery cells and Rivian’s 2170 cells are similar in any way.
The Tesla 2170 battery cells are produced along with Panasonic in Giga factory Nevada. Which won’t be changed to any other location anytime soon. Rivian has declined to comment on this matter. In recent planning, it is known that the company is planning for an $80 billion IPO.
The initial lawsuit by Tesla says that Rivian is purposefully taking Tesla employees to get information. Including the details like recruiting process, compensation plans, bonus, and manufacturing project management systems are said to be illegally taken by Rivian. The case is going to continue through California state judge San Jose.
Tesla being cautious about its most precious technology may seem obvious. But there are not many details regarding the case. It is unclear whether Rivian is really into poaching employees and getting information. Only recently the company started deliveries of its first models. Losing this case would mean more hurdles for the company.