Exclusive Amazon-backed Rivian confirms strategy for 2nd U.S. assembly plant

R.J. Scaringe, Rivian’s CEO, introduces his firm’s R1T all-electric powered pickup truck at Los Angeles Car Present in Los Angeles, California, U.S. November 27, 2018. REUTERS/Mike Blake

DETROIT/WASHINGTON, July 22 (Reuters) – Amazon.com Inc (AMZN.O)-backed electrical auto startup Rivian Automotive ideas to develop a second U.S. assembly plant that will also involve battery cell production, in accordance to 4 persons acquainted with the issue.

“Though it can be early in an evolving process, Rivian is discovering areas for a 2nd U.S. manufacturing facility,” Rivian spokeswoman Amy Mast explained on Thursday. She declined to offer further details.

A number of U.S. states have bid for the plant – dubbed “Task Tera” in documents – which will be declared in a few of months and crack ground early upcoming yr, stated the sources, who asked not to be determined. The timing could nevertheless adjust presented the coronavirus pandemic, which has now delayed the planned announcement from the summertime, the sources mentioned.

“We seem ahead to doing the job with a supportive, technological innovation-ahead local community in purchase to develop a partnership as solid as the a single we have with Typical,” Mast explained.

Rivian’s present U.S. plant is in Ordinary, Illinois.

The typical charge of a new vehicle assembly plant at present is $1 billion or extra, whilst a battery cell production manufacturing unit is at the very least $2 billion. Other automakers have partnered with battery brands on mobile manufacturing. Samsung SDI Co (006400.KS) provides battery cells to Rivian.

Automakers are racing to develop EVs as China, Europe and other nations around the world and regions mandate decrease carbon emissions. In the United States, conventional carmakers like Normal Motors Co (GM.N) and Ford Motor Co (F.N) are retrofitting vegetation for EV generation, although Tesla Inc (TSLA.O), Taiwanese deal company Foxconn (2317.TW), and startups like Lucid and Canoo (GOEV.O) have present vegetation or are including them.

California-dependent Rivian, also backed by Ford and T. Rowe Value (TROW.O), aims to contend when it rolls out its R1T pickup and R1S SUV, as very well as a delivery van for Amazon. Rivian will look for a valuation of well above $50 billion in a likely public listing later on this calendar year, in accordance to a different resource common with the make a difference.

COVID-Prompted DELAYS

Rivian, which has lifted $8 billion because the begin of 2019, experienced a valuation of $27.6 billion in January right after a $2.65 billion financial commitment spherical led by T. Rowe Price tag. Other traders in Rivian include things like Soros Fund Administration, Fidelity, BlackRock Inc (BLK.N) and Saudi auto distributor Abdul Latif Jameel Co (ALJ). examine additional

2021 has been challenging for Rivian, having said that, as Main Govt R.J. Scaringe mentioned in a letter to buyers past 7 days that COVID-19 had delayed the start of its cars. The 1st deliveries of the R1T, beforehand slated for July, ended up pushed to September, while the R1S was delayed to the drop. browse a lot more

A next U.S. plant will develop the company’s capability and include things like a 50 gigawatt-hour (GWh) battery mobile output procedure developed in phases, as effectively as a solution and engineering centre, according to paperwork viewed by Reuters that were submitted to state economic enhancement officials. Whilst the files did not point out Rivian, resources explained to Reuters that Tera and Rivian were being 1 and the same.

The proposal stated spring 2021 as the time period in which states would be notified of the firm’s final decision, with “mobilization” probable in the summertime, and then the start of building in the tumble. However, the pandemic has delayed that timeline, the resources said.

The challenge calls for an believed 2,000 acres of land and the site would look for to attain net-zero carbon emissions as soon as doable, in accordance to the proposal.

Launch editions of Rivian’s pickup and SUV are priced at $73,000 and $75,500, respectively, with 2022 styles readily available for preorder at $67,500 for the R1T and $70,000 for the R1S. Amazon has purchased 100,000 electric vans from Rivian via 2024, with production scheduled to start out in the tumble of this year.

Scaringe told Reuters previous November that Rivian planned to abide by the original a few autos with smaller types targeted at China and Europe.

Reporting by Paul Lienert and Ben Klayman in Detroit, and David Shepardson in Washington
Extra reporting by Anirban Sen in Bengaluru
Modifying by Matthew Lewis

Our Requirements: The Thomson Reuters Trust Rules.