DIGEST – Rivian is “making progress” in increasing production for tram at the Normal, Illinois assembly plant, and is aiming for a 10% share of the electric vehicle market by 2030, RJ CEO Scaringe said Thursday.
“We’re absolutely making progress,” he said at a Wolfe Research conference on efforts to ramp up vehicle production. “The factory is starting to slope beautifully.”
Scaringe said RivianThe company’s shares closed up 10.7% at $63.71, having shut down the factory for the first 10 days of January to make changes to the production line to boost production. Quantity.
Scaringe, in response to a question about how big Rivian could become by 2030, said the company is in a brand position “to build the portfolio … to allow us to really move forward. build a 10% market share position in the EV space.”
He called global semiconductor chip shortage limiting the most “painful” in promoting production construction. California-based startup produced 1,015 vehicles last yearapproaching the 1,200 target due to supply chain constraints.
Scaringe says Rivian has replaced some chipsets in some parts with others that are easier to buy. He said the global shortage would be a factor for the rest of the year.
Shares of Rivian tumbled after it stated in its first-quarter earnings report when a public company struggled to produce R1T pick up and R1S SUV car. It also has a contract to build 100,000 electric delivery vans by 2025 for Amazon.com, which has a 20% stake in Rivian.
Back in December, Scaringe was hit with production challenges given global supply chain constraints, the COVID-19 pandemic, a tightening labor market, and short-term issues around construction. electricity the battery modules.
Scaringe said on Thursday that Rivian is building a test line to manufacture battery cells in-house and also plans to co-invest with a supplier for production. Rivian cells are currently supplied by Samsung SDI. He also said automakers will need to work to secure key battery materials such as lithium and nickel.
“It’s not an option. It’s a requirement,” he said.
