Electric vehicle maker Rivian is making a strong push toward profitability. As part of the process, the EV company has drastically reduced costs and improved the efficiency of its manufacturing process, according to Rivian CEO and founder RJ Scaringe.
In a recent interview with reporters, Scaringe explained that Rivian has eliminated “over 100 steps from the battery-making process” in addition to removing “52 pieces of equipment from the body shop and over 500 parts from the design” for its flagship models.
The company believes that the retooling of the manufacturing process will result in 35% reduced costs for its electric vans while also expecting similar savings on the remainder of its fleet.
With lower costs and simplified production, Rivian hopes to be able to offer more affordable EVs while also increasing its production. However, the resulting plant shutdown will mean that the company will have to wait a bit longer to reap the benefits.
Rivian, which never turned a net profit since being founded in 2009, recorded a $1.5 billion loss in the first quarter.
“We will deliver a very small percentage of these newer vehicles [in terms of cost] in Q2,” Scaringe said via Electrek. “You won’t see a lot of those benefits until you get to Q3.”
Rivian’s shares have recorded a 6.69% jump on Monday to close at $11.01 per share. The stock is currently 47.82% down year-to-date.