Rivian will use some of the $13.7 billion it raised when it went public to build a second factory in Georgia that will double the capacity of its plant in Illinois.
The funds will be used to expand the production capacity of the Normal, Illinois factory from 150,000 to 200,000 electric vehicles a year. The second factory will be built east of Atlanta and will have a production capacity of 400,000 vehicles a year.
The battery cell production will be located in Georgia. Construction will begin in summer of 2022. The company said in its shareholder letter that it chose the site due to the combination of sustainable business operations, talent pool, and proximity to supply chain and logistics.
The Georgia facility will be important to the goal of speeding up the large-scale adoption of sustainable transportation, according to the letter.
The capital will be used to design and develop the next generation of vehicles. Rivian has three vehicles, two of which are aimed at consumers. Amazon is the first commercial van customer with an initial 100,000 vehicle order.
Rivian will invest a lot in vertical integration, which is in line with the company and its founder and CEO. Rivian intends to invest in battery technology across the value chain, including battery cell chemistry development, raw material source, and in-house cell manufacturing, the company said in its shareholder letter.
The electric drive system will be an investment priority. The company wants to advance its in-house family of future drive units that offer higher performance, improved packaging, and lower cost.
Rivian plans to increase its sales by investing in customer engagement and experiences, including its Rivian membership program for consumers, and its FleetOS digital fleet management software for its commercial customers.
Rivian plans to build out its charging infrastructure. Rivian said it will have more than 60 mobile service vans in service by the end of the year, with eight service centers located in California, Colorado, Illinois, New York, Utah, and Washington.
