Electric vehicle maker Rivian Automotive would benefit late this year and in 2024 from a significant deflation for battery material prices, finance chief Claire McDonough has said at a technology conference, according to Reuters.

Prices for raw materials used in batteries surged to record highs in recent years on burgeoning demand for EVs, coupled with tight supplies due to the pandemic that were exacerbated by Russia's invasion of Ukraine, the news agency noted.

This year, tapering demand for EVs had led to a drop in prices of batteries and a further fall was expected through the year, Reuters added, citing market research firm TrendForce.

McDonough said at a Goldman Sachs conference impacts of falling commodity prices would likely be felt in the fourth quarter of the year and into next year. Lower costs of battery raw materials could potentially boost margins for Rivian and its rivals who have struggled with high costs and dwindling cash balances.

Reuters noted Rivian, whose shares had risen about 27% so far this year, was also ramping up production of its in house drive unit which was expected to help reduce dependence on third party suppliers, cut costs and improve production.

Strong demand, a production ramp up and a clear path to profitability next year had helped Rivian stand apart from peers that had struggled with tough competition, output hurdles and the effects of Tesla's price war, the news agency said.