By on May 3, 2022

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.”

Rivian

[Image: Rivian]

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51 Comments on “Rivian Receiving $1.5 Billion Incentive Package from Georgia...”


  • avatar
    redapple

    I dont know.
    Massive investments in BEV. billions +
    GM, Ford, VW,BMW et al… Have the dealers and built in customers. I dont see how start ups can possibly succeed long term. And Teslas? They are crap. Body panels still dont fit. Run everything thru the TV screen. Used ones fail the German TUV inspection at 11 % rate. Double any other brand. Market % should fall when the big boys start full bore production.

    Tesla is a brand for techie, coder, beta boys that stand 5’8″ with the beards and skinny jeans but dont know how to change a tire. ( inside the like acting girly ( nothing wrong with that if thats your bag. But just admit it))
    ( This how Beta they are. I see / hear vocal fry seeping into 20 + year old men’s speech !!! )

    • 0 avatar
      SCE to AUX

      Are you drunk?

      • 0 avatar
        RHD

        Drunk is a possibility, but unfounded aspersions not based on any personal experience, with an anti-progress slant, tends to be the pattern for the first post on many articles. Uncle Vladdie’s influence can be seen quite clearly.

    • 0 avatar
      Astigmatism

      It’s confusing to you when someone makes a half million bucks a year in their twenties because they stayed in school and worked hard, isn’t it?

      • 0 avatar
        jkross22

        Praying at the altar of these tech companies more often than not results in people’s dreams getting crushed. Even ignoring the outright fraud being perpetrated by those involved with WeWork, Theranos and other high profile cases, the amount of work visa fraud, document tampering, wire fraud and general sloppy or inaccurate bookkeeping at silicon valley companies is no longer surprising. Unless you don’t keep up with that kind of thing.

        This isn’t new and many of these people deserve the ridicule redapple is launching at them.

        • 0 avatar
          Astigmatism

          What do you think wire fraud has to do with “techie, coder, beta boys that stand 5’8″ with the beards and skinny jeans” and “like acting girly”? The world financial system was blown up in the aughts by a bunch of CDO trading frat boys but I don’t think it the fact that they liked going to strip clubs had anything to do with it.

          • 0 avatar
            jkross22

            Astigmatism,

            I didn’t say they did. I said there’s a lot of pretending silicon valley is somehow free of the fraud in other sectors. You really think it’s that different than the CDO hobgoblins that caved in on itself with no one being held accountable – except for Martha Stewart.

    • 0 avatar
      EBFlex

      “I dont know.
      Massive investments in BEV. billions +
      GM, Ford, VW,BMW et al… Have the dealers and built in customers. I dont see how start ups can possibly succeed long term. And Teslas? They are crap. Body panels still dont fit. Run everything thru the TV screen. Used ones fail the German TUV inspection at 11 % rate. Double any other brand. Market % should fall when the big boys start full bore production.

      Tesla is a brand for techie, coder, beta boys that stand 5’8″ with the beards and skinny jeans but dont know how to change a tire. ( inside the like acting girly ( nothing wrong with that if thats your bag. But just admit it))
      ( This how Beta they are. I see / hear vocal fry seeping into 20 + year old men’s speech !!! )”

      100% spot on.

    • 0 avatar

      Just opposite. Tesla is on its way to becoming the biggest automaker in the world. Arguments among experts are not about if Tesla will survive or not but when it will become #1 and when VW, GM and Ford will go bankrupt. It seems that VW will be the first to go under – too much debt and Chinese EV makers will kill VW in China.

      • 0 avatar
        Fred

        Tesla still has a way to go as far as production goes https://www.goodcarbadcar.net/2021-us-auto-sales-figures-by-manufacturer/

      • 0 avatar
        Lou_BC

        @Inside Looking Out – I’d suspect that GM would go bankrupt before Ford. Ford restructured with the last economic collapse so I’d say they are better grounded in market realities. GM’s bailout just made them more complacent. I’m not convinced VW will go bankrupt. VW is #2 in sales globally with Toyota in first. I was surprised to see Hyundai/Kia in 3rd.

      • 0 avatar
        random1

        Arguments among experts are not about if Tesla will survive or not but when it will become #1 and when VW, GM and Ford will go bankrupt. It seems that VW will be the first to go under – too much debt and Chinese EV makers will kill VW in China.

        Arguments among experts? That comes straight from Tesla fanboy forums. I don’t think they’re going under, but I don’t think any of the big boys are, under current circumstances anyway.

        • 0 avatar
          eng_alvarado90

          Agreed, those experts live under a bubble somewhere in Silicon Valley and they’ve never visited a developing country that won’t get full throttle into EVs in decades

      • 0 avatar
        eng_alvarado90

        Tesla is decades away to become the #1 automaker in the world. Why?
        Over 60% of the population lives in developing or underdeveloped countries. They don’t have EV stations nearby nor the infrastructure at home to charge their EVs. And their countries don’t have the workshops nor dealers required to sell and service those EVs.

        They are a force to be reckoned with, but only in developed countries and will remain niche or non existant everywhere else

  • avatar
    SCE to AUX

    “Local residents living east of Atlanta have voiced concerns that the new facility would upset their quality of life”

    The locals here in the Pittsburgh area rejected a new Amazon distribution center which promised to pour money into a derelict school district, provide hundreds of jobs, and rehabilitate an old, sprawling Westinghouse Research site that has been vacant for 20 years.

    The proposed Amazon facility would have added 700 trucks a day to a road that handles 80-90k vehicles per day. That extra 1% of traffic was deemed intolerable.

    So, a win for the Pittsburgh locals – while the school district and the local business site continue to crumble for the next 20 years.

    As for Rivian, I hope this new endeavor works out well for both them and Georgia.

    • 0 avatar
      Astigmatism

      To be fair, people really, really hate Amazon.

      • 0 avatar
        tonycd

        “To be fair, people really, really hate Amazon.”

        To be really really fair, they really really have reason to. Especially in a working class town.

      • 0 avatar
        redgolf

        Try telling my wife that! ;-(

      • 0 avatar

        Amazon is one of the most left wing pro-democrat corporations in the world. People buy all stuff from Amazon, how they can hate Amazon/ Amazon-hate is one of the lies spread around by Fox News. People love Amazon. Amazon is the first place I go to shop when I need something and I am Republican.

      • 0 avatar
        ktm

        To be fair, the poor are uneducated and vote by what Facebook says.

        • 0 avatar
          RHD

          The real issue here is if the company can get its act together and produce profitable, quality products. We can’t tell how long it will take for electric vehicles to become seriously mainstream – there are too many variables, such as installation of charging stations, development of new technologies, foreign competition, interference from the power companies, stupid wars halfway across the globe disrupting the economy, and so on. It will be like the first decades of the internal combustion automotive companies – lots of players, many go under along the way, mergers, buyouts, new ones come along, and the whole thing goes through a constant process of evolution. And the ignorant right-wing naysayers and misinformers give everyone unnecessary headaches along the way.

  • avatar
    EBFlex

    Imaging getting $1.5 billion and all you have to show for it is the poorly designed and even more poorly executed R1T.

    It is interesting to watch towing reviews with it though. Losing a mile of range every few seconds is hilarious but also a tragic example of how awful EVs are.

    • 0 avatar
      SCE to AUX

      As for towing, you’re not wrong. I just replaced an ICE with an ICE for that reason. Losing half the range before weather or speed factor in made a larger tow-ready EV impractical except for local use, and that’s not the only towing I do.

      At least Ford’s Lightning can calculate the range once it’s loaded or towing, so the driver won’t be surprised as the range drains off twice as quickly as normal.

      • 0 avatar
        Lou_BC

        No one mentions the fact that towing with an ICE vehicle can also half the range. The problem lies in recharge times. You can “recharge” an ICE vehicle in 5 – 10 minutes.
        I found this interesting graphic:
        https://ww w. statista. com/statistics/420786/distance-away-from-home-of-camping-trips-us/
        29% travel less than 50 miles to go camping.
        22% : 51 – 100 miles
        19% : 101 – 150 miles
        10% : 151 – 200 miles
        20% : more than 200 miles

        • 0 avatar
          SCE to AUX

          @Lou: You are correct. When towing with my former minivan, its mileage dropped from 23 to 10-14, averaging about 12.

          But this also meant my range dropped to 252 miles, which is pretty usable even for long-distance hauling, especially with the abundance of gas stations. With an EV, you’re risking trouble if you go below 20% (which could be like 20-25 miles), since charging stations aren’t as plentiful.

          And – for now, anyway – the 500-mile EV that can tow 250 miles is going to be $100k+ even if it existed, which is out of my budget.

          I remain an EV fan, but for towing any distance they don’t make sense to me yet. Tesla’s Semi is purpose-built with an enormous battery and mega charging capability, so that seems like a different animal than what lay people can access.

          • 0 avatar
            mcs

            “I remain an EV fan, but for towing any distance they don’t make sense to me yet.”

            Actually, towing range might be better than normal or at least the same. The same EV tech in cars is leading to trailers with their own drive-assist motors and batteries. Airstream has a prototype. You can even detach it from the tow vehicle and maneuver it into the camping spot with a remote control. Plus, effectively having 6 wheel drive should improve handling on poor surfaces.

            https://www.airstream.com/air-lab/concepts/estream/

          • 0 avatar
            Lou_BC

            @mcs – that makes a lot of sense. It would aid driving in poor road conditions.

  • avatar
    ToolGuy

    Public service announcement:
    CA = California
    GA = Georgia
    [GE = different Georgia… smaller population and even smaller GDP, but that’s not important right now]

    I mention this because it seems like someone somewhere is confused (a switched letter could explain it?). As a general reminder, California is a progressive utopia; Georgia is where Deliverance was filmed. (They both have ocean access and big airports and both end in “ia”, so possibly easy for Rivian to mix up?) Since it is almost certain that Nancy Pelosi and David Hasselhoff would never get them confused, there must be some important differences.

    In some circles CA stands for “Canada” – did Rivian intend to place their new manufacturing facility up there?

    On the topic of financial incentives:
    https://www.cbs42.com/news/birminghams-missed-opportunity-how-the-magic-city-missed-out-on-delta/

    Speaking of movies (and CA and LA [Louisiana] and GA and Canada):
    https://fee.org/articles/why-the-movie-industry-is-fleeing-california/

  • avatar
    kcflyer

    Sounds like a better return on stolen taxpayer money than the billion dollars recently stolen from NY taxpayers to build a new outdoor football stadium in Buffalo. I would happily support a nationwide end to all taxpayer subsidies. Let the market decide.

    • 0 avatar
      FreedMike

      Agree with you 100% on the football-stadium thing – I am sick and tired of watching the NFL (a billionaire’s club if there ever were one) extorting cities and states into building stadiums for them. The “bRoNcOz NeEdZ nuUuUUU sTaDiumM” bullsh*t is starting up here in Denver as well – apparently one that’s a tick over 20 years old just won’t do anymore.

      Buffalo will live if the Bills leave, just as St. Louis lived through losing not one, but two NFL teams.

    • 0 avatar
      SCE to AUX

      “I would happily support a nationwide end to all taxpayer subsidies.”

      Same here, but your elected representatives can’t resist since it’s for the jobs.

      Like you and DenverMike, I’m sick of the stranglehold that sports teams have on their home cities. Pittsburgh’s ‘new’ sports venues are 10-20 years old now, and I’m sure there will soon be talk of replacing them on the taxpayer dime – again.

      Back to the subsidies – it’s a slippery slope. Everything seems to have a subsidy behind it – built into the tax code or through special legislation.

      • 0 avatar
        FreedMike

        “Pittsburgh’s ‘new’ sports venues are 10-20 years old now, and I’m sure there will soon be talk of replacing them on the taxpayer dime – again.”

        Particularly true of the NFL, less so with baseball, hockey or basketball. It’s like the NFL has some kind of voodoo hold over cities. Stan Kroenke stood by as the city and state spent millions of tax dollars planning a new Rams facility (the city even bought the land, and hired an architect to design the new facility) when he never intended to keep the team there in the first place. And, like Pittsburgh, St. Louis doesn’t have millions of dollars to spend on nonsense like that.

        The city sued Kroenke for $700 million and won. More stuff like that needs to happen.

        • 0 avatar
          SCE to AUX

          Sorry Freed, I meant you and not Denver… (eye roll).

          This stadium thing was a motivator for me to leave Allegheny County in 2001 for good.

        • 0 avatar
          jkross22

          Or voters need to decide these sports stadium boondoggles are worth booting mayors and city council members from office.

          Credit to San Diego leadership for having the wisdom to ASK THE VOTERS if they wanted to pay for a new stadium for the billionaire Spanos family that owns the Chargers.

          The voters told Spanos to pound sand and pay for it himself. And that’s how the Chargers became a homeless franchise, where even their home games in LA attract more opposing fans than home fans.

          • 0 avatar
            FreedMike

            Oakland told Davis and the Raiders to take a hike as well, and – imagine this – the city survived. Good for them.

            I think some of “hit the road” sentiment might have to do with the fact that building stadiums in major California cities is comically expensive because California land prices are comically expensive.

            The new stadium L.A. ended up costing five billion dollars (not counting the $700 million “let’s f*ck over St. Louis” fee Kroenke ended up paying when he moved the team) and was privately financed. And that stadium is in Inglewood, which we all know isn’t the high-rent district in L.A.

            I can’t even imagine how much it would cost to build a NFL stadium in Oakland. You could probably build a Bellagio on Mars for that money.

      • 0 avatar
        kcflyer

        I lived in the Pittsburgh area when the new stadiums got rammed down the taxpayers throat after the voters said no at least twice. So they tore down three rivers which was still not paid for and built the billionaires and their entitled millionaire employees two new venues with the taxpayers taking it in the shorts. Disgusting Like Pittsburgh, Buffalo’s owner is building an outdoor stadium. You know, because the weather here is so nice. If we were going to pretend the billion dollar ripoff was for the greater good it would be useful more than 8 days a year plus preseason.

        • 0 avatar
          indi500fan

          Nothing is more beautiful to a politician/bureaucrat than the computer-simulated view of the playing field from their “comp” seats in the luxury box of a proposed stadium.

      • 0 avatar
        bullnuke

        My former employer received tax breaks and financial incentives to build a new production facility at a small town in Western, Ohio. It was a ten-year deal for tax breaks and guarantees of hiring folks to operate the new facility. At year 11, after the end of the deal, the layoffs began almost immediately reducing the number of employees by the “guaranteed” hiring increase from the deal plus another 15 “heads”.

      • 0 avatar
        Astigmatism

        States (and cities) throwing subsidies at football teams, manufacturing plants, movie studios, real estate developers, etc. just amounts to a race to the bottom where everyone loses except for the lucky company. We really need a nationwide ban, but I have no idea how to do one that would stand up in court. Imagine if every company had to simply decide where building their new development made the most sense, not which local politicians they could fleece out of the most cash.

        • 0 avatar
          SCE to AUX

          “which local politicians they could fleece out of the most cash.”

          Pretty often, I think the politicians cough up the incentives with little asking.

          If a team threatened to leave, I’d let ’em. But that’s not how you get re-elected, especially in the City of Champions (Pittsburgh).

  • avatar
    CKNSLS Sierra SLT

    MotorTrend had an extensive article (available online for free) of several Rivian R1Ts- 7,700 mile across the U.S.A.mostly off-road trip for these trucks. They performed impressively to say the least. So-the vehicles themselves are NOT vapor ware.
    I would agree that towing range is an issue for all EV trucks-as well as recharging with a sizable trailer attached.

    • 0 avatar
      RHD

      Most comments about how “awful” electric vehicles are come from keyboard warriors with no knowledge at all about the subject.
      How about an optional supplemental battery pack that could be added to the vehicle when towing is planned? Slide it into its place, and it’s like adding an extra gas tank to a BEV.

  • avatar
    CKNSLS Sierra SLT

    BTW-I tow several thousand miles a year with my 2018 Silerado Crew Cab w/the 5.3. I tow a 5,000 pound-30 foot travel trailer.

    Non-towing hwy mpg-between 22mpg and 25 mpg

    Towing 10mpg. So-it’s not only EVs that suffer when towing.

    • 0 avatar
      eng_alvarado90

      Agreed on the towing range dropping in half when towing regardless of the vehicle being powered by gas, diesel or electricity .

      However there is a big advantage for non EVs. Charging speed.
      Not all the EV stations have enough clearance to get your vehicle + trailer charging there.
      I’d hate to be that guy charging my EV truck + trailer while blocking access for at least 30 min

  • avatar
    indi500fan

    What is Rivian is bringing to the pickup party that’s unique, other than non-union low costs. Is that enough? Not really sure. Tesla is the buzz, GM and Ford (and maybe Ram) are dealers and service everywhere.
    I could see Rivian’s commercial operation being somewhat more successful.

  • avatar
    vww12

    Solyndra, here we go again!

    Solyndra was heavily promoted as a leader in the Clean Energy sector and was the first recipient of a loan guarantee under President Barack Obama’s economic stimulus program, the American Recovery and Reinvestment Act of 2009.

    Two years later, it filed for bankruptcy.

    • 0 avatar
      FreedMike

      So because Solyndra failed, everything else related to clean energy must fail. Got it.

      • 0 avatar
        jkross22

        Mike,

        What lessons learned came out of the Solyndra debacle? What institutional knowledge was gained at the federal level from that experience to avoid repeating the same mistakes?

        Government is not efficient, smart, thoughtful or honest. It doesn’t learn from mistakes, it doesn’t ever fire anyone for incompetence and it relies on us not caring to keep the scam going.

        Not exactly a ringing endorsement of citizenship, is it?

        https://www.nbcnews.com/politics/justice-department/biggest-fraud-generation-looting-covid-relief-program-known-ppp-n1279664

        https://www.irs.gov/compliance/criminal-investigation/woman-pleads-guilty-for-53-point-8-million-dollar-covid-19-relief-fraud-scheme

        https://www.fool.com/the-ascent/research/covid-19-stimulus-check-fraud-statistics/

  • avatar
    tylanner

    If this gets Direct Sales passed in Georgia it will be pretty impressive…

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