Rivian CEO RJ Scaringe says Chinese automakers’ dominance in the global electric vehicle (EV) market is not built on secret technology tricks but on a systemic cost advantage that makes it almost impossible for Western automakers to compete on equal footing.
Speaking on the Everything Electric podcast, Scaringe said it was “inconceivable” that Western countries would indefinitely allow Chinese EV makers to export freely while restricting Western manufacturers’ ability to sell into China.
“It’s inconceivable that Western markets would not allow their domestic manufacturers to produce in China, but simultaneously allow freely those Chinese companies to produce in China and sell,” Scaringe said.
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Scaringe’s warning comes as the United States and Europe are already moving to raise barriers. The Biden administration imposed a 100% tariff on Chinese-made EVs earlier this year, while President Donald Trump had leaned heavily on tariff threats to push automakers into expanding U.S. production.
Although Rivian does not currently operate in China, Scaringe said the company closely tracks developments there.
“The part that everyone needs to take note of is that these are technically very advanced vehicles and more advanced than a lot, most of, I should say, most of the Western vehicle manufacturers,” he said. “I’d say Rivian and Tesla being exceptions to that.”
The Anatomy of China’s Cost Advantage
The Rivian chief said the low cost base of Chinese automakers comes from a mix of factors: subsidized industrial development, cheaper labor, and a more efficient supply chain for everything from components to final assembly.
“We’ve taken lots of cars apart, every car manufacturer does,” Scaringe explained. “There’s not something magical when you take it apart that’s allowing these really impressive cost structures. There’s no secret magic thing that you’re like, ‘Oh, aha, they did this.’ But rather it’s the compounding benefits of a lower cost of capital.”
Protectionism Has Limits
Scaringe, however, cautioned that tariffs and trade barriers cannot be the sole solution. He noted that the United States remains heavily dependent on foreign sources for the raw materials needed to make EV batteries and other critical technologies.
“As you think about future technologies, we actually don’t have the same geological advantages that we had in the fossil fuel area,” he said. “So by necessity it requires trade and trade often with countries that we haven’t historically traded as much with.”
One glaring example is nickel, which Rivian requires for its batteries. The world’s largest producer is Indonesia, not the United States. Scaringe noted that the U.S. lacks both sufficient reserves and the social license to rapidly expand domestic mining.
“Even if we really wanted to, there’s not an ability for us to press a button and have a nickel supply chain, nickel mines pop up in the United States, putting aside the fact that there’ll be very, very few communities in the United States that want to have a nickel mine in their backyard or their people that want to necessarily work in that line of business,” he said.
Interestingly, Scaringe said the Trump administration “really does understand” the bind U.S. automakers face. While protectionist measures may shield domestic EV makers from immediate Chinese competition, they do not address the deeper structural dependency on imported minerals and components.
A Shared Concern Across the Atlantic
Scaringe’s warning echoes a rising chorus in Europe, where automakers like Volkswagen, Renault, and Stellantis have voiced similar concern about China’s EV push. The European Commission has opened investigations into Chinese EV subsidies, citing fears that cheaper imports are undercutting Europe’s auto industry. Germany’s carmakers, long reliant on the Chinese market for growth, are under particular pressure as domestic sales stagnate and Chinese rivals push aggressively into Europe with budget-friendly yet highly advanced models.
Industry analysts say the transatlantic parallels show that this is not just a U.S.-China trade fight but a systemic challenge reshaping the global auto industry. Chinese EV makers enjoy not only scale but also a commanding position in the battery supply chain, where they control mining, processing, and production at levels Western firms have yet to match.
For Rivian and its Western peers, the clear message is that survival depends on staying at the cutting edge of technology while navigating a global market tilted by both cost and geopolitics. Currently, competing with China means more than tariffs, and it doesn’t matter if you are in Detroit, Wolfsburg, or Paris.