Cox Automotive has interests in automobile auctions and wholesale services. It recently invested $350 million in upstart electric vehicle developer Rivian Investment. The electric vehicle battery aftermarket is set to become huge. When Cox Automotive takes interest in this industry, its first move is to learn more about batteries.
Knowledge Transfer After Cox Automotive Takes Interest
Cox Mobility Group President Joe George told WGLT News he invested in Rivian to learn about battery systems. That’s because a Rivian battery will still hold around 75% of its usable capacity when the company replaces it. Cox Mobility wants to know how to calculate resale value.
“To do that, you have to have a pretty good understanding of the charge/discharge histories of the batteries,” George explains. He expects working with Rivian will teach him how batteries age during their use. He needs to understand this in order to educate his potential market about their second lives. And motivate resale battery value, and price to the second use market.
We Don’t Want Them Going Into Landfills, He Says
While the main goal is profit, Cox says “We’re aggressively looking at different ways to make sure landfill doesn’t happen.” When Cox Automotive takes interest in an alien industry it must have good income in sight.
However, with new battery prices coming down it will be tougher to shift first generation stock. None the less, George is confident of finding sufficient home storage and micro-grid customers.
Moreover, its investment in Rivian comes a time when Amazon ordered 100,000 electric delivery vans from it. That said, there are still unanswered question about grid capacity to absorb the extra load. Rivian will manufacture electric vehicles and batteries at its factory in Normal, Illinois. It expects its employee numbers will grow from 190 to 1,000 by 2024. Amazon and Ford also have large stakes in Rivian.
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Preview Image: Rivian R1S SUV
