Rivian Automotive, an electric vehicle startup backed by Amazon and based in California, announced its plans to build a second U.S. assembly plant.
According to documents seen by Reuters, this plant will also include a 50 gigawatt-hour battery cell production operation built in phases and a product and technology center.
The plant, nicknamed “Project Tera,” will need 2,000 acres of land and has been bid for by multiple states. Anonymous sources say the announcement will take place in a couple of months and break ground in 2022.
States were originally set to be notified in spring of 2021 with construction beginning in the fall, but the coronavirus pandemic forced delays. The pandemic also delayed vehicle launches from the summer to the fall.
As Rivian aims to add an additional plant to its already-existing one in Normal, Ill., cost of a new vehicle assembly plant sits at approximately $1 billion. Add battery cell production and it goes up to about $2 billion.
Developing electric vehicles continues to be a priority with areas such as China and Europe mandating lower carbon emissions. Rivian’s new site will push toward net-zero carbon emissions as soon as possible.
Rivian’s most recent contribution will come in the form of its R1T pickup, R1S SUV and a delivery van for Amazon. Amazon already ordered 100,000 electric vans through 2024. Launch editions of the pickup and SUV are slated to cost $73,000 and $75,500, respectively.
A source claims Rivian will pursue a valuation north of $50 billion in a potential public listing later this year.