Launch of Rivian electric vehicles to build $ 5 million plant in Georgia, USA | Automotive News

The Amazon-sponsored startup also reported its first-quarter results since it went public, reporting a third-quarter loss.

Amazon-backed electric vehicle Rivian Automotive Inc said on Thursday it would build a $ 5 billion plant in Georgia, the second largest assembly plant in the United States, to increase production.

In its first-quarter results since its release last month, Rivian also reported a third-quarter loss. Rivian’s shares fell nearly four percent in overtime trading.

The new plant will employ more than 7,500 people, is expected to open in 2024, and will eventually build 400,000 vehicles a year, largely to confirm plans previously outlined in documents submitted with other states.

With a market value of nearly $ 93 billion, Rivian made its Nasdaq debut last month in the world’s largest initial public offering in 2021. Rivian raised nearly $ 14 billion in IPOs to fund future growth, in addition to the $ 10.5 billion he raised privately. Amazon.com Inc. and Ford Motor Co. as investors own 20 percent of Rivian and about 12 percent Ford.

Irvine, a California-based company has struggled to launch its R1T pickup truck, R1S SUV and Amazon delivery van due to supply chain constraints, including a shortage of chips, affecting car manufacturers. The pick-up was launched in September and the SUV in December.

During the Coronavirus pandemic, a shortage of chips forced a reduction in vehicle production and a rise in vehicle prices due to limited inventories. Companies are struggling to protect their operations from the spread of the Omicron variant of coronavirus.

Rivian, other startups and established automakers are racing to take the lead in Tesla Inc. EV as pressure to eliminate vehicle emissions increases in China and Europe.

Rivian’s Georgia plant will merge with the Illinois Normal plant in the US. The company plans to eventually open plants in Europe and China. CEO RJ Scaringe said Rivian plans to build at least one million vehicles a year by the end of the decade.

The Illinois plant currently has an annual capacity of 150,000 vehicles, and Rivian said it plans to increase it to 200,000 by 2023 as it adds new vehicles. Scaringe said the company has sold its R1 range in 2023.