Rivian completes Normal Plant Upgrade with improved efficiency and capacity

Rivian has completed the Normal, Illinois manufacturing plant retooling upgrade to achieve maximum efficiency and cost reduction in car production.

The shutdown was announced in early April and the retooling continued throughout the month. These new upgrades are aimed at high efficiency and cost-oriented material changes in the R1 vehicle platform.

“The plant retooling upgrade also made significant changes that are expected to optimize our manufacturing processes,” wrote Rivian.

The Normal Plant has added around 600 new or modified robots to improve R1 production line efficiency. The company has brought a new flow of material and inventory within the plant. These new changes could significantly improve cycle time and utilization.

“Based on early indications, we see significant progress on the R1 material cost optimization efforts following the plant retooling upgrade,” wrote Rivian.

Rivian Normal Illinois Manufacturing Facility (Image Credit: Rivian)

Cost Reduction:

Rivian is taking these steps to optimize the production cost of its vehicles and also to prepare for future lineups. It announced in March that the new R2 midsize electric SUV will be produced in the existing Normal, Illinois facility, instead of the under-construction plant in Georgia.

The company mentioned that this decision will benefit cost control, improve the launch timeline, and increase the facility’s capacity and visibility in cash-on-hand to fund operations.

Rivian expects to save more than $2.25 billion compared to building a new R2 at the Georgia site. The savings could come from capital expenditures, product development investment, and supplier sourcing opportunities.

Furthermore, the new retooling will help the company to use core R1 technologies on the R2 production ramp for steady growth. After changes, the Normal plant could deliver 215,000 annual unit output for Rivian R1T, R1S, EDV, RCV, and R2. The figure includes 155,000 units of Rivian R2.

The EV company has recently achieved a$827 million incentive package from the Illinois state government.