Rivian, the Amazon-backed electric automaker that aims to be the first to bring an EV pickup truck to market, plans to open a second U.S. manufacturing factory, sources told TechCrunch, confirming an earlier report from Reuters.
Rivian wouldn’t elaborate on when it planned to build the factory, but did confirm it was in the process of identifying a site for a second plant. Reuters reported that the factory, dubbed Project Tera, would also include battery cell production, a detail that would drive up the cost and size of the factory.
“While it’s early in an evolving process, Rivian is exploring locations for a second U.S. manufacturing facility,” spokesperson Amy Mast said in an emailed statement. “We look forward to working with a supportive, technology-forward community in order to create a partnership as strong as the one we have with Normal, Illinois.”
The news comes a week after Rivian CEO RJ Scaringe sent a letter to customers that the company was pushing back deliveries of its long-awaited R1T electric pickup truck and R1S SUV several more months due to delays in production caused by “cascading impacts of the pandemic,” particularly the ongoing global shortage of semiconductor chips. The R1T deliveries will begin in September with the R1S to follow “shortly,” Scaringe wrote in the message.
Rivian plans to assemble its consumer products — the R1T, R1S — as well as the commercial delivery vans slated for Amazon at its factory in Normal, Illinois. That factory, which once produced the Mitsubishi Eclipse through a joint venture between Mitsubishi and Chrysler Corporation, has been completely updated and expanded.
The Normal factory has two separate production lines producing vehicles. One is dedicated for the R1 vehicles and other line is for its commercial vans. Amazon ordered 100,000 of these vans, with deliveries starting in 2021.
The automaker has raised more than $8 billion from a diverse set of backers that includes Ford, Cox Automotive, T. Rowe Price Associates Inc., Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue and D1 Capital Partners. That capital will be needed to keep its 7,000-person workforce running and while building an assembly factory, a project that will cost at least $1 billion if it follows industry estimates.