Rivian and Bosch Locked in Legal Battle Over EV Motors

Rivian and Bosch, two major players in the electric vehicle space, are entangled in a high-stakes legal dispute over EV motor supply. The clash originates from a 2019 deal in which Bosch was set to supply motors for Rivian’s R1T and R1S. Bosch alleges that Rivian breached the contract by secretly developing its own in-house motors, leaving Bosch with substantial unrecovered costs. On the other hand, Rivian accuses Bosch of supply shortages, which allegedly hindered its production, causing delays and damaging its reputation.

The partnership began when Rivian sought to secure critical components for its flagship models, the R1T truck and R1S SUV. Bosch, a renowned automotive supplier, was contracted to provide the electric motors essential to these vehicles. However, Bosch now claims Rivian planned to eventually replace their motors with an in-house alternative, effectively cutting Bosch out of future production. Bosch says it invested significant resources into this partnership and that Rivian’s actions breached their contract, resulting in considerable financial losses.

Rivian, however, paints a different picture. The EV startup argues that Bosch failed to deliver a sufficient supply of motors, resulting in production delays that adversely affected Rivian’s ability to meet customer demand and harmed its brand’s reputation. Rivian asserts that these supply issues were a significant factor in its decision to accelerate the development of its own in-house motors.

As the legal battle unfolds, it highlights the challenges automakers face in navigating supply chains and maintaining production timelines while pursuing vertical integration. Rivian’s strategy of producing its own motors signals a broader trend of automakers seeking to have more control over key components to avoid supply chain disruptions.

The outcome of this case could have a significant impact on Rivian’s future production and partnerships, as well as broader implications for supplier relationships in the growing EV industry.

For the full story, visit Electrek.