It was more than expected that Rivian would have some bad news to share in its Q4 2021. The company lost $2.46 billion in the last quarter of last year alone. However, RJ Scaringe shared some exciting news about the company’s plans: Rivian is working on an 800V architecture, heat pump, bidirectional charging, and also adopting LFP cells.
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If you have lost Peter Rawlinson’s video about the technical details of the Lucid Air, you missed a hell of an explanation about why high voltage is beneficial to electric cars. Although it represents a safety concern that automakers tackle as well as they can, more voltage allows for lower current. That reduces resistance, heat losses, and weight: the cables can be thinner.

With these benefits, charging can also be faster. As Rawlinson explained, not because of the batteries: they still take only 4.2V each. It is the entire electric system that takes advantage of the higher voltage to speed up charging. That shows how improved chemistries such as solid-state batteries are crucial to making EVs more practical.

That’s what LFP cells offer Rivian. They are heavier due to their lower energy density, but CTP (cell-to-pack) can make you increase that and still put batteries to work as structural elements. They offer a lower risk of thermal runaway and are also not so sensitive to dendrite formation. Above all, they are cheaper, even if their lithium content still makes them attractive for recycling when that is necessary. That may take a while…

BYD’s Blade Batteries last for 1.2 million kilometers (745,650 miles) and eight years. CATL developed a method to make batteries last 16 years or 2 million km (1.24 million miles). When such cells are no longer useful for cars, they can still have a second life as energy storage devices. In other words, anyone looking for a robust EV with the chemistries currently available will have to choose one with LFP cells.

Scaringe said that the first LFP battery pack will launch “in the commercial vehicle platform later this year, and then will make its way into our consumer vehicles by late 2023.” The Rivian CEO also said that the company is “developing in-house battery chemistries and in-house production capability.” He was pretty emphatic about this.

“When I say in-house, that's entirely in-house, not through a joint venture or through a partnership structure. But the LFP that's first launching later this year, that's a cell that we've sourced through a partner and a cell that we're going to be building in that close partnership.”

Scaringe said that Rivian is “also developing a heat pump-based thermal system,” bidirectional components, and “a bidirectional home charger and home energy products.” In other words, the company will soon offer a more efficient heating system for its cars and will make these EVs also work as moving power storage devices. Hopefully, it will test them enough to avoid the heat pump issues that Tesla is currently experiencing.

Back to the bad news, the Rivian CEO said that the Normal plant has “the ability to produce approximately 50,000 vehicles across our R1 and RCV platform in 2022.” Due to supply chain issues, this year's production output will probably be just 25,000 vehicles. Again, it was more than expected. At least Rivian had good surprises to share.

EV maker Rivian has hired a top executive from a major auto supplier as its next COO, according to people familiar with the matter, an effort to get its troubled manufacturing operations back on track.

Rivian has struggled to ramp up production, citing supply chain constraints such as a shortage of semiconductors. To help tackle those production snags, it has chosen Frank Klein, the head of the car-making unit at Canada's Magna International Inc., said the people, who declined to be named.

A representative for Rivian declined to comment.
Klein was one of Automotive News Europe's Eurostars in 2021 for his work in expanding Magna Steyr's contract manufacturing business.Rivian CEO R.J. Scaringe told analysts Thursday that a COO would be named next week, saying the new executive would focus on scaling up the company's production and supply chain operations.

"With our 2022 priorities, we've been very focused on ensuring we have the right team working towards our mission," Scaringe said on a conference call.

The EV-maker is closely followed and backed by a long list of stellar investors. But it has struggled since a blockbuster November IPO, as parts shortages and production hiccups have pummeled the stock. Rivian has been without a COO since the beginning of the year when Rod Copes stepped down after less than two years on the job.
Klein, who did not respond to a request for comment, has been at Magna Steyr since April 2019, according to his LinkedIn profile.

Since July 2020, he has been president of Magna Steyr, the company's contract vehicle-manufacturing arm based in Austria. Prior to that, he spent 25 years with Daimler AG.

Magna spokeswoman Tracy Fuerst declined to comment.

Rivian expects to build 25,000 vehicles in 2022, including two consumer models and a battery-electric delivery van for investor and customer Amazon, less than half of planned capacity at its Normal, Ill., factory, which the company has blamed on supply chain constraints.

Rivian has released its Q1 2022 production and deliveries results for the first quarter of 2022. The California EV startup said it produced 2,553 vehicles at its manufacturing facility in Normal, Illinois, without offering further details. These figures are in line with the company’s expectations though, so Rivian might deliver on its pledge to build 25,000 vehicles in 2022.
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Although Rivian doesn’t detail how those numbers break down by models, a more interesting piece of information surfaces from the report. Despite the fact that Rivian has produced 2,553 vehicles, it only reported 1,227 deliveries in the first quarter of the year. Considering that the startup sits on 80,000 preorders for the R1 family of EVs, plus 100,000 orders from Amazon for the electric van EDV, it would be interesting to learn why Rivian hasn’t delivered more of their vehicles to customers.

Last year, Rivian announced the production of 1,015 vehicles, with 920 of them being delivered to customers throughout 2021. This still left 95 vehicles from the 2021 production to be delivered in 2022, so the real delivery number in Q1 2022 is even lower, at 1,132. We wouldn’t be surprised to learn that Rivian delayed deliveries in the wait for missing electronic components, the same way that Ford did with the Bronco.

We know Rivian has been hit especially hard by the chip shortages in the automotive industry. The company revised its prospects while lowering production estimates to 25,000 units for 2022. Nevertheless, it seems like Rivian is on the right track to ramp up production, considering it built 1,410 vehicles as of March 8. This means the company built the remaining 1,243 vehicles in just three weeks. This is why Rivian thinks it can deliver on its production estimates for the year ahead.

“These figures are in line with the company's expectations, and it believes it is well positioned to deliver on the 25,000 annual production guidance provided during its fourth-quarter earnings call on March 10, 2022,” the automaker said in a regulatory filing.

With 80,000 reservations still waiting to be fulfilled and a stash of cash estimated at $18 billion, Rivian would have no problem weathering the storm and coming on top of its current problems. Rivian estimates to get to Normal, Ill. production capacity of 150,000 a year by 2023, with an increase to 200,000 vehicles already in the works. A second production facility is being under construction in Georgia, with a planned capacity of 400,000 vehicles

Electric vehicle startup Rivian Automotive will receive a total of $1.5 billion in state and local incentives and tax credits for the new EV plant it plans to build in Georgia, according to documents the company and state signed on May 2.

This is by far the biggest incentive package Georgia has ever offered to a company, with Georgia Economic Development Commissioner Pat Wilson describing the size of the package as being "appropriate" for the largest single industrial announcement in Georgia history.

The automaker and Georgia's Department of Economic Development noted that the $5 billion plant is expected to employ some 7,500 people by 2028. The average annual salary will be $56,000 and all employees will also receive equity in Rivian.

The two parties also estimate that the new plant will create 7,978 additional indirect jobs. Together, these 15,478 jobs are expected to generate over $1billion in labor income annually.

The Economic Development Agreement (EDA) between the Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton counties, the State of Georgia and Rivian was approved and signed by all parties on May 2, marking a milestone in the automaker's progress towards the development of its second US manufacturing plant.

In a short statement, the company said that the "long-term economic partnership promises to deliver value to Rivian, the people of Georgia and their kids' kids' kids."
In addition, Rivian released the site plan of the future campus as well as an exterior rendering of the front of the plant building. The rendering also shows planned green spaces filled with native plants. Actually, Rivian promises that over 50% of the site's acreage will remain unpaved when the plant reaches maximum production capacity.The automaker, which also operates a plant in Normal, Illinois, where some 5,000 people build Rivian R1T electric pickups, R1S electric SUVs, and electric vans for Amazon, expects to break ground at the new site as early as this summer. The EV maker also forecasts that production will start in 2024 at its Georgia plant.

The project has seen some opposition from residents east of Atlanta who say that the factory will spoil their rural quality of life. However, the press statement from Georgia state leaders notes that the agreement with Rivian "ensures that the project follows locally required standards pertaining to water quality, groundwater recharge and runoff, and local ordinances."

Shares of Rivian Automotive Inc opened at a record low on Monday, down 14%, after a report that early investor Ford would be selling a part of its stake in the electric-car maker.

Rivian's shares were trading at $24.77, a far cry from their record of $179.50 in November last year.

Ford is selling 8 million of its Rivian shares as the stock's lockup period expired on Sunday, CNBC reported over the weekend, citing sources. Ford was Rivian's fourth largest shareholder with a 11.4% stake, according to Refinitiv data.

Rivian is struggling with a supply chain crisis that has limited its production just as it was starting to get underway at its factory in Normal, Illinois. The company earlier cut its planned 2022 production in half to 25,000 vehicles due to supply chain issues.

The Irvine, California-based company has lost roughly three-quarters of its value this year, while delivering only 1,227 cars in the first quarter.

Amazon.com Inc, Rivian's second-biggest shareholder with a 17.7% stake, recorded a 59% fall in operating income in its first quarter, largely hurt by its investments in the carmaker. Amazon is also one of Rivian's key customers and is expecting to receive 100,000 delivery vans by 2024.

JPMorgan Chase also plans to sell a Rivian share block of between 13 million and 15 million from an unknown seller, CNBC reported, priced at $26.90 a share, similar to Ford's.

The companies were not immediately available for a comment.

Shares of other new electric-car makers have also declined as investors worry whether these start-ups can manufacture enough electric vehicles to meet soaring demand amid supply chain issues and rising material costs.

Lordstown Motors Corp's shares fell 13% after the company said it needed more funds to put its Endurance pickup truck on the road.

Rivian on Wednesday reaffirmed its annual production forecast of 25,000 units, saying ongoing supply chain disruptions and material costs prevented the electric vehicle maker from reaching its original target of 50,000 vehicles.

The Irvine, California-based company's shares rose 5% in extended trading after closing the day down 9.6%.

"We remain focused on ramping production throughout 2022. We believe that the supply chain constraints will continue to be the limiting factor of our production," Rivian said in a letter to shareholders, adding that it would be able to double its annual output absent supply constraints.

Rivian had halved its 2022 forecast in March as it struggled to secure the chips needed to make its R1T pickup truck, R1S SUV and electric delivery van for Amazon.com Inc (AMZN.O).

It delivered 1,227 vehicles in the first quarter, up from 909 units in the previous quarter.

Rivian said it has received over 90,000 pre-orders in the U.S. and Canada for its R1S SUV and R1T pickup truck as of May 9.

The company's first-quarter revenue came in at $95 million, below analysts' estimates of $130.5 million, according to Refinitiv data.

It's net loss widened to $1.59 billion from $414 million a year earlier.

Wall Street investors have been disappointed with the company's progress and vehicle order numbers, and Rivian shares came under growing pressure this week as the company's post-IPO lockup period expired. Ford Motor Co (F.N) offloaded eight million Rivian shares for $124 million, a Tuesday filing showed.

At around $18.5 billion, Rivian's market valuation has plummeted since it went public in November. The company is now valued roughly in line with the $17 billion it holds in cash and cash equivalents.

Rivian, which currently operates a single plant in Illinois, is planning to invest $5 billion to build a new production plant in Georgia. A company spokeswoman last week said Rivian aimed to open that plant in late 2024, but Rivian on Wednesday said it targeted a 2025 launch date.

Hindered by the global semiconductor shortage that continues to plague the automotive industry, electric vehicle maker Rivian still managed to produce 4,401 vehicles in the 2nd quarter of the year.
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The 42% increase in production over the first three months of the year was a huge boost for the company, despite the supply chain headwinds, and kept their goal of 25,000 vehicles this year in sight. Production at the former Mitsubishi plant in Illinois is limited by the chip shortage and only runs a few days a week in an effort to meet customer orders. The company plans to be running day and night shifts five days a week in the latter part of the year.

The Wall Street Journal reported that the company stated at the end of March they had $17 billion in cash, and to stem further losses, which reached $1.6 billion in the first quarter, production must be increased. The plant has the capacity to manufacture 150,000 vehicle per year.

Rivian is also facing competition from more established carmakers. The Ford Motor Company reported its electric vehicle sales rose by 77% in June alone, establishing momentum for the legacy manufacturer. Ford expects an increase in production of the Ford F-150 Lightning and Mustang Mach-E will bolster sales in July.

Originally formed as Avera Motors in 2009 (changed to Rivian in 2011) the company focused on autonomous and electric vehicles. They currently offer two models of electric vehicles; the R1T pickup truck and the R1S SUV. The company also produces an electric delivery van in a partnership with Amazon. The vehicles are built on a 'skateboard' platform that can accommodate future designs.

The company has ambitious plans to develop an exclusive charging network throughout the U.S. and Canada. Those efforts are supported by several facilities in the Western United States and Canada. Plans are underway for a second vehicle manufacturing facility in Georgia.

Bloomberg anticipated that Rivian was studying to cut about 5% of its staff. A few days later, RJ Scaringe wrote a memo to the company’s employees to confirm that the company was evaluating a layoff, even if in an apologetic fashion.
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According to the letter obtained by several media outlets, the Rivian CEO said: “This is not how we intended for you to hear about this. (...) We had hoped these very sensitive and complex conversations would have stayed within Rivian until we could address them more comprehensively.”

We would not doubt if Rivian now conducted an internal investigation to discover who could have told Bloomberg about the discussion to reduce the number of employees. Bloomberg said Rivian was focusing on teams with duplicated functions. Scaringe knows that the info can only have leaked from those who took part “in recent all-hands meetings.”

To prevent a talent diaspora, Scaringe said that his “team is the core of Rivian” and that the company is “working to be as thoughtful as possible as we consider any reductions.” With 14,000 employees, these layoffs could represent 700 people getting the pink slip.

Whatever happens, Scaringe said that the goal is to focus Rivian’s business “in order to stay ahead of the changing economic landscape.” As Sourcing Journal revealed, he added: “We are financially well positioned and our outlook remains strong, but to fully realize our objectives it is critical that our strategy supports our sustainable growth as we ramp towards profitability.” In other words, any job cuts would be strategic other than just to cut costs.

His concerns make perfect sense in an environment of supply chain shortages, lack of batteries and raw materials for them, and, most of all, for a company that is still spending money rather than making money selling cars. For Rivian to be profitable, it will have to achieve a much larger scale than it currently has with the R1 family (R1T and R1S). The factory in Georgia and the R2 family will be crucial to getting there.

Amazon is beginning to roll out some of the electric delivery vans that it developed with Rivian Automotive, the companies announced Thursday.

In September 2019, Amazon founder and then-CEO Jeff Bezos stood on stage at the National Press Club in Washington, D.C., to announce that the company had purchased 100,000 electric vehicles from the startup as part of its ambitious push to achieve net-zero carbon emissions across its operations by 2040.

Amazon debuted a version of the van in October 2020, and then tested the vehicles in a number of cities throughout 2021. Now, Amazon says it will use the electric vehicles to make deliveries in a handful of cities, including Baltimore, Chicago, Dallas, Kansas City, Nashville, Tennessee, Phoenix, San Diego, Seattle and St. Louis, among others.