Amazon deploys 5,000 Rivian vans as supply chain issues improve at EV maker

Amazon has deployed more than 5,000 electric delivery vans from EV startup Rivian Automotive on U.S. streets as part of the online retailer's pledge to put 100,000 of the vehicles on the road globally by 2030, Amazon said in a blog post.

The milestone adds to positive news this week for Rivian, which beat second-quarter delivery forecasts for the three vehicles it makes in Normal, Ill.: the EDV van for Amazon and the R1T pickup and R1S crossover for consumers.

Rivian CEO RJ Scaringe told Bloomberg Television on Wednesday that about 20 percent of the electric vehicle maker's production would be for commercial vans this year. He also said Rivian is ready to take additional buyers for its vans beyond Amazon.

Currently, Amazon has exclusivity with Rivian, but Scaringe said the automaker is negotiating to allow sales to other buyers.

"To date, Amazon's Rivian vans have delivered more than 150 million packages across the country," Amazon said in the blog post Thursday. More than 800 cities now have the electric vans delivering packages, the retailer added.

Amazon first deployed the EDV van about a year ago. For the U.S., the van comes in three cargo sizes: 500 cubic feet, 700 cubic feet and 900 cubic feet, according to Rivian.

"This expansion marks a major milestone for Amazon as we continue to drive the fastest rollout of an electric delivery fleet at this scale in the U.S.," Amazon said.

Since Rivian launched its Illinois factory in late 2021, the automaker has faced supply chain shortages, rising parts prices and manufacturing issues that slowed its production ramp-up and battered its stock price.

But this week, Rivian delivered some good news. Second-quarter deliveries reached 12,640 among the three models, beating analyst estimates and sending the automaker's stock price sharply higher. Rivian does not break out deliveries by model.

Scaringe told Bloomberg that for the first time since production started 18 months ago, supply chain issues are no longer a major headache. "What we saw in Q2 is really the beginnings of the supply chain now running in a healthy way," Scaringe said. "And importantly, it's not just about what we saw this quarter, but what's to come."

Amazon said Tuesday it was rolling out more than 300 Rivian-made vans for deliveries in Germany, representing the EDV's first deployment in Europe.

Scaringe said the van deployment will help with future sales of other Rivian products in Europe. "It's the beginnings of us opening up to the European market for our products," he said. Rivian is working on smaller vehicles on a new platform.

Rivian's EDV vans are the first to employ the automaker's in-house Enduro motor. The vans are also the first Rivian vehicles to use an iron-based battery pack. Both the Enduro motor and lithium iron phosphate battery will find their way into Rivian consumer vehicles, the automaker has said.

Also this week, Rivian reiterated its 2023 goals of producing 50,000 vehicles among its three nameplates. In the first half of this year, Rivian has produced 23,387 and delivered 20,586. In 2022, Rivian produced just under 25,000 vehicles.