Rivian hits gas on ambitious EV projects
Fresh off a $12 billion initial public offering, Rivian Automotive is investing in a dizzying array of expansion projects and is looking for a site for a stand-alone battery factory in addition to a pair of new vehicle-assembly plants already planned.
The ambitious to-do list for the electric-vehicle maker will be funded in part by its initial public offering — the sixth-largest IPO in U.S. history. Rivian shares soared 22% Thursday in their second day of trading, creating a stockmarket value of more than $100 billion. Two months after delivering its first pickups, largely to employees, Rivian now has a market valuation exceeding General Motors.
The top investment priority is a second U.S. EV manufacturing facility, according to people familiar with the matter, followed by a plant in Europe that would start building vehicles by the end of 2023. A site in the United Kingdom has been under consideration, along with other locations in continental Europe, the people said, asking not to be named discussing private information. The cost of the Europe factory would be in the billions of dollars, they said.
Arizona, Michigan and Texas are among the states under consideration for the battery manufacturing site, some of the people said. Irvine, Calif.-based Rivian currently assembles battery packs using cells from Samsung SDI at its existing Normal, Ill., vehicleassembly factory where the automaker builds its R1T pickup.
No final decision has been made on any of the sites, the people said. New candidates for the second EV assembly plant in the U.S. have also emerged in recent weeks, some of the people said. Many states are vying for new battery plants as the auto industry shifts toward electrified vehicle lineups. Ford announced plans in September to spend $11.4 billion in Kentucky and Tennessee to build three battery factories and an EV facility.
The investments add some flesh to Rivian’s bare-bones plans outlined in previous statements, filings and news reports. The company had held talks with the city of Fort Worth, Texas, to invest $5 billion in a electric-vehicle assembly plant, Bloomberg News reported in August. And in an Oct. 1 filing, Rivian disclosed its long-term ambitions about growing in-house expertise in battery cell production — without saying that included a stand-alone facility.
In an interview with Bloomberg Television on Wednesday, Chief Executive Officer RJ Scaringe declined to comment on the status of Rivian’s talks in Texas and in Europe, which he called “potential locations.”
“These are really important decisions,” Scaringe said. “For us it really comes down to looking at the ability to recruit an outstanding team to help drive and operate these facilities.” Also important, he said, is access to its suppliers and logistic considerations for delivery of components.