Rivian Receiving $1.5 Billion Incentive Package from Georgia

Matt Posky
by Matt Posky

Rivian Automotive Inc, purveyor of the all-electric R1T and R1S, will receive $1.5 billion in incentives from state and local governments to build a new manufacturing facility in Georgia. Eager to become home to the company’s planned $5 billion assembly plant, the state is offering a comprehensive incentive package that includes tax breaks. The government has a few stipulations, however.

Under the new agreement, Rivian’s factory would be required to produce 7,500 jobs and its existing investment target by 2028 to receive the full $1.5 billion. That includes a sizable battery production site and may explain why the state is offering up the largest corporate incentivization package in its history.

Georgia’s economic development commissioner, Pat Wilson, was quoted by Reuters as saying the upcoming facility represented a major victory by placing the region “at the forefront of the electric vehicle revolution.”

Despite numerous EV startups being accused of ginning up their business model to spur investments, local governments are still keen on encouraging manufacturing — especially if it happens to relate to the tech sector. While Rivian failed to meet its production goals in 2021, lost a bid to replace the USPs aged fleet, and has seen its share price decline since its November IPO, it’s also managed to deliver functional vehicles while some of its peers have not.

From Reuters:

The Georgia plant, located east of Atlanta would be Rivian’s second U.S. assembly plant, after its plant in Normal, Illinois.

The company, which is 20 [percent] owned by Amazon.com Inc (AMZN.O), has launched three vehicle models in the U.S. — its R1T pickup, R1S SUV and EDV delivery van for Amazon — but has struggled ramping up production amid supply chain constraints, including a shortage of semiconductors.

Wall Street investors have been disappointed with the company’s progress and vehicle order numbers, and Rivian shares have dropped more than 75 [percent] since the company went public in mid-November.

Local residents living east of Atlanta have voiced concerns that the new facility would upset their quality of life. However, the State of Georgia seems eager to see new jobs arrive and has stated that the project will follow “locally required standards pertaining to water quality, groundwater recharge and runoff, and local ordinances.”

Rivian’s Georgia plant will be quite a bit larger than the 5,000-person facility in Illinois (pictured) and the company believes it can be completed by 2024 if everything goes according to plan. An executive summary of the project is available here for those interested.

“Today marks a milestone in our progress towards the development of our second U.S. manufacturing plant in Georgia as the Economic Development Agreement (EDA) between the Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton counties, the State of Georgia and Rivian was approved and signed by all parties,” the automaker stated on Monday. “The long-term economic partnership promises to deliver value to Rivian, the people of Georgia and their kids’ kids’ kids.”

[Image: Rivian]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Steve Biro Those old tube-type, single-speaker AM radios sounded better than you’d think. AM radio offered 15khz of bandwidth in those days - not far off from the 20khz of FM. And those full-range speakers provided rich, full-toned audio that reflected off the windshield just fine. I imagine the hepcats would have easily caught jazz broadcasts on the 50,000-watt clear-channel stations out of the big cities after sunset every night. AM was pretty good in the post-war period of the late 1940’s through 1960’s.
  • Jeff The styling of this Hudson reminds me of a 49 thru 51 Mercury.
  • Arthur Dailey That is a cool car. Really hope that it somehow gets restored and back on the road in the future. As for single speaker on the dash radios. Those were still around in the early 1970's. We found a way as teenagers to live with them until we could afford to purchase a Sparkomatic or other after market radio and install it and some speakers.In the George Reeves' Adventures of Superman TV series they generally drove Nash vehicles and this car reminds me of the cars in that show.
  • Jeff This car is in remarkable condition especially the seats. Hudson Hornets were raced in the time of this car and won many car races despite having a flathead straight 6. This car looks very restorable but I guess the value makes it not worth it. Nice find.
  • Eliyahu Looks like the heater and the gauges were optional. Note the pull-out parking brake handle near them. The Hornet was also an AMC model later on. Kelvinator also made refrigerators at some point. They just don't make them like they used to-thank heavens!