Rivian to Double EV Production in 2025 Amid Soaring Demand for Electric Trucks
Electric vehicle maker Rivian aims to deliver 60000 units in 2022, production rates need to be doubled by 2025 following the R1T pickup and R1S SUV demand. Rivian is constructing 150,000 EVs, and with the new factory expansions in the USA and Germany, hoping to make as many as 300,000 EVs per year by 2025.
Electric Truck Market Size
According to Precedence Research’s report on the electric truck market size was USD 2,51 billion in 2023, calculated at USD 3.16 billion in 2024, and is expected to achieve around USD 20.25 billion by 2032, The sector is registering a double-digit CAGR of 26.10% from 2023 to 2033.
Key Highlights of Rivian’s Expansion Plans
- Production Capacity: Rivian increase its production to 300,000 EVs annually by 2025, primarily focusing on the R1T pickup truck and R1S SUV.
- Global Expansion: The company is expanding its facilities in the United States and Germany to accommodate this growth.
- Customer Demand: Rivian has received over 100,000 pre-orders for the R1T and R1S combined, reflecting strong consumer interest.
EV Truck Segment Growth
According to a report by BloombergNEF, global sales of electric trucks are expected to grow from 500,000 units in 2023 to 1.5 million units by 2026. This increase is due to the rising customer need for durable and environmentally friendly vehicles that are appropriately designed for challenging terrains.
Global Electric Truck Sales Projections (2023–2026)
| Year | Global Electric Truck Sales (Million Units) | Annual Growth Rate (%) |
| 2023 | 0.5 | — |
| 2024 | 0.9 | 80.0 |
| 2025 | 1.2 | 33.3 |
| 2026 | 1.5 | 25.0 |
Rivian’s Market Strategy
In 2023, Rivian delivered 75,000 EVs, marking a 50% year-over-year increase. By 2025, Rivian aims to produce 300,000 vehicles annually to cater to both the U.S. and European markets.
- Rivian plans to invest $10 billion in a new manufacturing facility in Germany, which focuses on producing electric SUVs and trucks for the European market.
- The company has secured long-term contracts with battery suppliers to ensure the smooth scaling of production as demand surges.
Incentives and Support for Electric Trucks
Governments are making aggressive offers to persuade consumers to shift to electric trucks. In America, the government provides a rebate of up to 40,000 dollars for electric models through the Clean Trucks Initiative a vision of full electrification of the trucks by 2040.
Global Electric Truck Incentives by Region (2024)
| Region | Average Incentive per Truck (USD) | Target for Zero-Emission Truck Sales |
| United States | $40,000 | 100% by 2040 |
| European Union | $35,000 | 60% by 2035 |
| China | $30,000 | 50% by 2030 |
Rivian’s fast-growing expansion and the scale-up of production make the company ready to become one of the leaders in the electric trucks and SUV market. It anticipates that make up a quarter of total global electric truck sales in the year 2026 when demand for these trucks has surged further.
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