Rivian Plans Second US Factory | Electric Vehicle News

Rivian Announces Plans for Second U.S. Manufacturing Facility

Rivian, the electric vehicle manufacturer supported by Amazon, intends to establish a second production plant within the United States. This move aims to position the company as a leader in the emerging EV pickup truck market, as reported by sources to TechCrunch, corroborating an initial report from Reuters.

Project Tera and Battery Cell Production

While Rivian has not specified a timeline for the new factory’s construction, the company confirmed it is actively evaluating potential locations. Reuters detailed that the project, internally known as Project Tera, will incorporate on-site battery cell production. This inclusion will significantly increase both the factory’s cost and overall scale.

“Rivian is currently investigating suitable locations for a second U.S. manufacturing facility, despite being in the early stages of planning,” stated spokesperson Amy Mast in a written communication. “We are seeking a community that is both technologically advanced and supportive, fostering a collaboration comparable to our successful partnership in Normal, Illinois.”

Delivery Delays and Production Challenges

This announcement follows a recent communication from Rivian CEO RJ Scaringe to customers. The letter informed them of further delays in the delivery schedules for the highly anticipated R1T electric pickup truck and R1S SUV. These postponements are attributed to production setbacks stemming from the ongoing global impacts of the pandemic.

Specifically, the persistent semiconductor chip shortage is causing disruptions. Deliveries of the R1T are now expected to commence in September, with the R1S to follow soon after, according to Scaringe’s message.

Current Production Capabilities

Rivian currently manufactures its consumer vehicles – the R1T and R1S – alongside the electric delivery vans designed for Amazon at its existing facility in Normal, Illinois. This plant underwent substantial renovations and expansion after previously serving as a manufacturing site for the Mitsubishi Eclipse.

The Normal facility utilizes two distinct production lines. One line is dedicated to the production of R1 series vehicles, while the other focuses on the assembly of commercial vans.

Investment and Workforce

Amazon has placed an order for 100,000 of these delivery vans, with initial deliveries beginning in 2021. Rivian has successfully secured over $8 billion in funding from a diverse group of investors.

These investors include Ford, Cox Automotive, T. Rowe Price Associates Inc., Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue, and D1 Capital Partners. This substantial capital is crucial for maintaining the company’s 7,000-person workforce and financing the construction of a new assembly plant.

Industry estimates suggest that building such a facility will require an investment of at least $1 billion.