NORMAL, Illinois — Electric-vehicle maker Rivian's drive to cut costs and turn its first profit has removed over 100 steps from the battery-making process, 52 pieces of equipment from the body shop and over 500 parts from the design of its flagship SUVs and pickups.
Reuters got an exclusive look inside Rivian's four-million-square-foot factory, with investors eager to learn more about the size and pace of savings after a three-week shutdown in April. Built primarily for major shareholder Amazon, Rivian's vans account for about one-fifth of its revenue. Making those battery packs is now easier. The modules are redesigned and come in one piece instead of walls and floors that were built separately.
"All of that together leads to us being able to get to our path to profitability and be gross-margin positive," said Tim Fallon, vice president of manufacturing at the plant. Sam Fiorani, vice president at research firm AutoForecast Solutions, who had expected the company to require a cash infusion before summer 2025, said reducing the cost per vehicle gives Rivian breathing room.