Rivian to open $ 5 billion manufacturing plant in Georgia

Rivian announced Thursday that the new $ 5 billion plant east of Atlanta, Georgia will be able to produce up to 400,000 vehicles per year, more than double the capacity of its existing plant in Bloomington. -Normal, Illinois.

Rivian expects to lose a few hundred vehicles below its goal of producing 1,200 vehicles in Illinois this year. As of December 15, Rivian had produced 652 of its mainstream pickup trucks and SUVs and delivered 386.

Rivian CEO RJ Scaringe said in the automaker’s first earnings call as a state-owned company that issues in the global supply chain, a tight labor market and covid have all resulted in issues of production.

Scaringe said that with Rivian’s vehicles requiring 2,000 parts, even a 0.1% parts shortage can slow production.

Even with the struggles, Rivian has had a year in small groups. Its IPO last month raised around $ 12 billion. Rivian is currently valued at around $ 90 billion, more than the two Ford (F) and General Motors (DG).
Rivian said Thursday he had 71,000 SUV and pickup pre-orders, far more than the 48,390 he had at the end of September. Motor Trend selected Rivian’s R1T as Truck of the Year this month.

The new Rivian plant on nearly 2,000 acres in Georgia will eventually employ 7,500 workers, according to Rivian. The automaker, which currently has more than 10,000 employees, plans to begin production of vehicles there in 2024. Scaringe said Rivian had assessed sites across the country for a location with access to talent and close to suppliers.

Rivian lost $ 1.2 billion in the first quarter as a public company, compared to losses of $ 288 million in the same period the year before.

Scaringe said Rivian is very focused on providing vehicles to Amazon (AMZN), which has ordered 100,000 delivery vehicles from Rivian by 2025.

“It is essential that we do not deprive them of vehicles,” said Scaringe.

Marjorie N. McClure