EV startup Rivian to construct $5 billion plant in Georgia, posts quarterly loss By Reuters

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© Reuters. FILE PHOTO: The company logo can be seen on a Rivian R1T pickup truck, the Amazon-backed electric vehicle (EV) maker, parked in front of Nasdaq Market in Times Square, New York City, United States, in Times Square on Nov. 10th will, 2021. REUTERS / Brenda

By Ben Klayman

DETROIT (Reuters) – Amazon-backed electric vehicle startup Rivian Automotive Inc announced Thursday that it is building a $ 5 billion facility in Georgia, its second U.S. assembly plant, to expand production.

In its first publicly released quarterly results since going public last month, Rivian also reported a loss for the third quarter. Rivian’s shares fell nearly 4% in after-hours trading.

The new plant will employ more than 7,500 people, will open in 2024 and will eventually build 400,000 vehicles per year.

With a market value of nearly $ 93 billion, Rivian made its Nasdaq debut in the world’s largest public offering in 2021 last month. Rivian raised nearly $ 14 billion in the IPO to add future growth to its 10.5 billion To fund US dollars raised privately from funds such as Amazon.com Inc (NASDAQ 🙂 and Ford Motor (NYSE 🙂 Co. Amazon owns 20% of Rivian and Ford owns about 12%.

The Irvine, California-based company struggled to roll out its R1T pickup, R1S SUV, and delivery van for Amazon as supply chain restrictions, including chip shortages, hit automakers around the world. The pickup started in September and the SUV in December.

During the pandemic, chip shortages forced automakers to curb vehicle production and vehicle prices rose due to limited inventory. Companies are now trying to protect their operations against the spread of the Omicron variant of the coronavirus.

Rivian, other startups, and established automakers battle to rival leading electric vehicle Tesla (NASDAQ 🙂 Inc. as pressure mounts in regions like China and Europe to cut vehicle emissions.

Rivian’s Georgia facility will join the Normal, Illinois facility. The company plans to eventually open plants in Europe and China. Chief Executive RJ Scaringe previously said Rivian plans to build at least 1 million vehicles a year by the end of the decade.

The Illinois plant currently has an annual capacity of 150,000 vehicles, and Rivian has announced that it will increase that to 200,000 with new vehicles by 2023. Scaringe said the company had sold out its R1 range by 2023.

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