Rivian Automotive, a company making electric pick-up trucks, will be receiving around $1.5 billion in state and local incentives to build a manufacturing facility near Atlanta, bolstering the company’s production efforts.
The incentive package announced by Georgia is the biggest in Georgia’s history. The Georgia Department of Economic Development says that it consists of tax credits, abatements, and subsidies like site preparation and job training support from the state.
The company will receive $476 million in statutory tax credits if it fulfills the promise to create a total of 7,500 jobs by the end of 2028. If it doesn’t, there are clawbacks to protect the taxpayer, said Pat Wilson, Georgia’s commissioner of economic development.
It will get $288 million in discretionary spending in the form of site preparation and job training programs. Tax abatements from the four counties hosting the plant make up the rest of the package — about $700 million over 25 years.
Rivian has been struggling to ramp up production of its vehicles at the company’s existing plant in Normal, Illinois, because of the supply chain issues. The new production plant in Georgia will be made at an estimated budget of $5 billion.
It will help the company in its ambitious growth strategy as the company plans to include new consumer EV models beyond its existing offerings. It currently offers a battery-powered electric pickup called R1T and an SUV called R1S.
Rivian was operating in stealth mode since 2009 and launched its pickup truck and SUV in November 2018. It has been investing heavily to ramp up production, including for its upscale all-electric R1T pickup truck. The company has an order of 100,000 delivery vans from Amazon as a part of the online retail giant’s Climate Pledge.
RELATED:
- Xiaomi unveils 8H Feel Leather Smart Electric Bed X Pro packed with stunning features
- Foxconn aims to get 5% of the global market share for the electric vehicles business
- Apple Car team dissolved but must be reorganized to meet 2025 deadline, analyst says
- Nikola Electric Trucks to launch in the market before Tesla Semi
- Ola Electric to recall over 1,400 e-scooters over recent fire accidents
