Rivian planning to build second manufacturing plant near Atlanta: report

Rivian planning to build second manufacturing plant near Atlanta: report

Rivian Automotive, a fast-growing electric vehicle automaker & automotive technology firm that recently went public, is reportedly planning to build its second manufacturing plant near Atlanta in the United States.

According to a report published in the Atlanta Journal-Constitution, Atlanta (the capital and most populous city of Georgia) is one of the options for the company’s second manufacturing plant. Previously, some reports suggested that Texas and Arizona were also among the options.

The aforementioned fresh report claims that the EV maker is now in late-stage discussions/negotiations for a parcel of land east of Atlanta, which could eventually be used to build a production facility for EVs as well as battery cells.

The publicly-traded EV manufacturer has also confirmed that it is in search a new location to build a manufacturing facility, but it remained tight-lipped about the site.

According to the report, “Rivian is in discussions with multiple locations as part of a competitive process for siting a second manufacturing facility. This may include Rivian being involved in certain public facing processes at potential locations. Involvement in these processes does not indicate a final decision.”

The reported location close to Atlanta would be not far from SK Innovation’s two under-construction battery manufacturing facilities, one of which can start series production sooner than later. The battery facility will produce EV batteries for manufacturers like Ford and Volkswagen. Rivian’s site for potential second manufacturing plant would reportedly be just 70 miles away from these two battery facilities.

Following the IPO, it would most probably be the best deal for Rivian to use the recently raised capital to expand its production capacity so that it could survive in the highly-competitive EV market in the long term. As the e-pickup/SUV segment is currently just crawling, it is the right time to overtake competitors. It has plans to have at least four plants globally, two in the United States, one in Europe and one in China.

Rivian, which said in its IPO prospectus that it would not be profitable until it adds more models and increase sales volume, has only one plant in Normal, Illinois. Currently, the lone manufacturing facility is capable of producing 150,000 EVs per year, and the company has an intention to boost production to 200,000 units per year. The long-term plan is to produce as many as 1 million units of all-electric pickups/SUVs per year by the end of current decade.