RIVN Stock: New partnership will help Rivian operate a “green” electric vehicle factory

Rivian (NASDAQ:RIVN) announced this week that it has entered into an agreement with a renewable energy company Rotation energy for the purchase of renewable energy certificates. This is part of the company’s plan to ensure that its Normal, Illinois plant runs on 100% renewable energy by 2030.

Pivot Energy will provide 60 megawatts of DC power for local solar projects in Illinois. As part of the deal, Rivian unveiled plans to purchase renewable energy certificates from a 50-megawatt DC power plant.

Rivian is among the electric vehicle companies that have come under significant pressure over the past 12 months. Year-to-date, RIVN shares are down more than 50%.

RIVN Stocks on Watch as Rivian Goes Green

Most investors focusing on the electric vehicle sector like to tout the zero-emission status of electric vehicles at the source.

The point is that producing electric vehicles requires large amounts of energy. Experts shared several environmental concerns, such as how metals are mined to produce batteries. Moreover, in most of the United States, generating electricity requires the use of fossil fuels, which means that electricity is not as green as many believe.

This makes Rivian’s push to be more environmentally sustainable noteworthy. This is a partnership that should benefit both Rivian and Pivot Energy in the long run.

Solar energy generation will be crucial to the onshoring and reindustrialization trends we are seeing in the US market. The fact that Rivian is taking this step forward is encouraging, although investors will likely want to know more details about what this deal will cost in the long run. Investors will also want to learn more about Rivian’s plans for its factory to run on 100% renewable sources.

As of the date of publication, Chris MacDonald did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s Editorial Guidelines.