Electric-vehicle maker Rivian simplifies output, cuts costs, aiming for first profit

By Abhirup Roy

NORMAL, Illinois (Reuters) -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.

The result of Rivian retooling its manufacturing process is a 35% reduction in cost of materials for vans and savings of "similar magnitude" for its other lines, CEO RJ Scaringe told Reuters.

Rivian's overall cost of building its EVs has "improved dramatically," he told Reuters during a factory tour Friday at Normal, Illinois, 130 miles (209 km) south of Chicago. "The design of the parts and the design of the plant facilitate making the vehicle easier to build."

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.