$1.5 billion Georgia incentives helps Rivian’s 2nd plant
The company said the agreement last week “marks a milestone in our progress towards the development of our second U.S. manufacturing plant, in Georgia.” The economic development agreement for the plant was approved by Rivian, the state and four affected counties, the automaker said.
Rivian launched production of the R1T pickup, R1S SUV and EDV commercial vans for Amazon at its Normal, Ill., plant last September. The company expects to build about 25,000 of those vehicles combined this year, which is about half what it could be producing with adequate parts supplies, the company has said.
In an interview last month, CEO RJ Scaringe said that the automaker’s current struggles would not affect its ambitious future plans, including the Georgia factory that will expand its lineup with more accessible vehicles for consumers. The R1T starts at $68,575 with shipping.
“We have to be hyper-focused on executing in the short term,” Scaringe said. “But if we set our strategy, and the things we’re working on long term, based around short-term supply blips that we’re feeling today, that would be ludicrous.”
The generous Georgia incentive package requires Rivian to meet its ambitious production and employment goals in order to receive all of the economic benefits, the state government said in a statement. If the automaker fails to do so, it would have to repay some of the incentives on a pro-rata basis.
“The agreement requires Rivian to comply with a 25-year claw back period and is among the strongest the state has ever secured,” the government statement said. “Rivian has until the end of 2028 to meet 7,500 jobs and make $5 billion in capital investment. It must then maintain these figures through 2047.”