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EV startup Rivian to construct $5 billion plant in Georgia, posts quarterly loss

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Amazon-backed electrical automobile startup Rivian Automotive Inc. on Thursday stated it can construct a $5 billion plant in Georgia, its second U.S. meeting plant, because it appears to be like to broaden manufacturing.

The brand new plant will make use of greater than 7,500 folks, is scheduled to open in 2024 and can ultimately construct 400,000 autos a yr, largely confirming plans beforehand outlined in paperwork filed with different states.

The plant will probably be situated on the so-called East Atlanta Megasite, Georgia Gov. Brian Kemp stated in a press release. Plant building is slated to start in the summertime of 2022 about 30 miles east of Atlanta. Manufacturing is focused to start in 2024.

In its first publicly reported quarterly outcomes because it went public final month, Rivian additionally reported a third-quarter loss.

With a market worth of virtually $93 billion, Rivian made its Nasdaq debut final month on the earth’s greatest preliminary public providing of 2021. Rivian raised nearly $14 billion within the IPO to fund future development on high of the $10.5 billion it had raised privately from such traders as Amazon.com Inc. and Ford Motor Co. Amazon owns 20 p.c of Rivian and Ford owns about 12 p.c.

The Irvine, California-based firm has struggled with the launch of its R1T pickup, R1S SUV and supply van for Amazon as supply-chain constraints, together with chip shortages, hit automakers globally. The pickup launched in September and the SUV in December.

Through the pandemic, the chip scarcity pressured automakers to curtail automobile manufacturing and automobile costs rose attributable to restricted inventories. Firms are actually scrambling to guard operations towards the unfold of the omicron variant of the coronavirus.

Rivian, different startups and established automakers are racing to tackle EV chief Tesla Inc. as strain grows in areas together with China and Europe to remove automobile emissions.

Rivian’s Georgia plant will be part of the one in Regular, Illinois. The corporate intends to ultimately open crops in Europe and China. Chief Govt R.J. Scaringe beforehand stated Rivian plans to construct not less than 1 million autos a yr by the tip of the last decade.

The Illinois plant at present has an annual capability of 150,000 autos and Rivian has stated it intends to extend that to 200,000 by 2023 because it provides new autos. Scaringe has stated the corporate has offered out its R1 lineup into 2023.

Shares in Rivian fell 3.5 p.c to $104.80 in after-hours buying and selling.

This story will probably be up to date.

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