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Rivian awarded a $ 1.5 billion incentive package in Georgia

Electric pickup manufacturer Rivian The car will receive $ 1.5 billion in state and local incentives to build a large factory near Atlanta, strengthening the company’s production efforts despite local resistance to the project.

According to a statement from the Georgia Department of Economic Development on Monday, Georgia’s largest package in history consists of tax credits, reductions, and subsidies such as state preparation and vocational training support.

Based in Irvine, California, Rivian is a well-funded newcomer to the attention of EV makers’ growing packs. The company’s initial public offering in November was the sixth largest in US history, generating more than $ 13 billion in growth funding. However, due to supply chain pressure, Rivian struggled to increase product production at its existing plant in Normal, Illinois.

The $ 5 billion Georgia plant is the pinnacle of an ambitious growth strategy that Rivian wants to include new consumer models in addition to its existing products. R1T SUV called R1S..

Rivian called the deal a “milestone” of progress towards the construction of a second plant.

“A long-term economic partnership is committed to providing value to the people of Rivian, Georgia, and their children,” the automaker said in an email statement.

Rivian will receive a $ 476 million tax credit if it fulfills its promise to create a total of 7,500 jobs by the end of 2028. If not, there is a clawback to protect the taxpayer. .. Georgia is spending an additional $ 288 million in discretionary spending in the form of site preparation and vocational training programs. Tax cuts from the four counties hosting the factory make up the rest of the package — about $ 700 million over 25 years.

“Netwin”

The county will still receive approximately $ 330 million in tax revenue from Rivian.2 If the project weren’t done, they would win millions of dollars, Wilson said.

“It’s a big net victory,” he said. “The state has always prioritized jobs. If you are creating jobs in the state, give incentives to those jobs.”

Some residents near the site in Rutledge, Georgia, about 45 minutes east of Atlanta, opposed the project because of concerns about traffic, environmental damage, and ongoing urban sprawl. The Facebook group, dedicated to fighting the project, has gathered about 3,000 members and is politically from former U.S. Senator David Perdue, who is challenging incumbent Governor Brian Kemp in the Republican Governor’s primary in Georgia in May. I got support.

The dissenting was big enough that the state took over the approval process, integrated regional zoning and compliance, and avoided the threat of project delays.

Rivian’s investment will be Georgia’s largest economic development project, at least since World War II. Peach has been handed over to multiple Asian and European automakers, with only one vehicle assembly plant. Kia There is a motor factory at West Point near the border with Alabama.South Korea battery Manufacturer SK Innovation builds a $ 2.6 billion factory in eastern Georgia, Electric carinclude Fordof F-150 Lightning Pick out.

Rivian has promised to create more than 7,500 jobs and ultimately aims to produce 450,000 vehicles annually at the site. According to the state, Rivian will pay workers an average annual salary of $ 56,000, and the project will create nearly 8,000 indirect jobs.

The company has also ordered 100,000 electric delivery vans from Amazon.com, a major shareholder of Rivian.

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Rivian awarded a $ 1.5 billion incentive package in Georgia

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