EV startup Rivian announced that it use the US$13.7 billion capital that it received as part of its IPO to build a second factory in the state of Georgia. This factory will operate with double the production capacity of Rivian’s Illinois factory.
According to a shareholder letter that Rivian released last Thursday and that was the first document to detail its earnings, part of this fund will be allocated for increasing the production capacity of its Illinois factory from 150,000 vehicles per year to 200,000 vehicles per year.
Rivian announced that its second factory will be built in Morgan/Walton counties east of Atlanta. The factory will target a production capacity of 400,000 vehicles per year.
The Georgian factory will break ground in summer 2022 and kick off production in 2024. Among other facilities, the factory will house a battery production line in order to ensure the steady supply of li-ion batteries.
Rivian indicates that the location was chosen as it allow for the continued operation of sales and human resources, as well as for its proximity to the supply chain and its ease of logistics.
In the near future, Rivian will invest the capital from its IPO to both design and development its next generation of vehicles.
As of now, Rivian offers three models: the consumer-facing R1T pickup and R1S SUV, as well as a commercial van.
Amazon holds a more than 20% share in Rivian and is the first client to have ordered more than 100,000 commercial vehicles from Rivian.
After having experienced the past two years fraught with supply chain issues, Rivian now intends to invest in its own EV value chain, which includes chemical development for batteries, raw material procurement, and in-house battery manufacturing. Through these activities, Rivian will at best be able to develop new battery technologies of its own, and at worst ensure the steady supply of batteries.
While making a push for sales, Rivian is also absorbing the experiences of past emerging automakers in the EV space and in turn expanding its service centers. In addition to eight such centers, Rivian has also prepared 60 mobile service hotspots, which provide sufficient service for Rivian owners across the contiguous US.
Although capacity expansion is not news for traditional automakers, such activities would mark a historical moment for emerging EV manufacturers based in the US.
It should be pointed out that, prior to Rivian’s move, the only emerging automakers that were able to mass produce EVs were Tesla, Lucid, and Rivian. Now, however, Rivian has become the second emerging automaker after Tesla to have two or more EV plants.
Not only will said maneuver raise Rivian’s production capacity, but more importantly, it will also serve to raise consumers’ confidence and erase any doubts about emerging EV manufacturers’ ability to mass produce.
(Image: Rivian)