At the end of last year, Rivian announced its intentions to build an all-new plant in Georgia. Despite protests from locals who cited environmental concerns, the Peach State has approved and signed off on the development of the company's second plant. This is a massive step in the right direction for the automaker; Rivian has already had problems keeping up with demand for products such as the R1T.
The $5 billion project will bring about much-needed employment, with the EV maker noting that as many as 7,500 jobs will be created by 2028, with an additional 7,978 indirect jobs. Rivian will not only employ thousands of Georgians with well-paying jobs of the future, but they will be "a welcome new addition to Georgia's business community," said Pat Wilson, Georgia Department of Economic Development Commissioner. The average annual salary is reported to be $56,000.
In total, Rivian will receive $1.5 billion in funding, comprised of local and state incentives, as well as tax credits. As per the agreement that secured the incentives, the electric vehicle maker has until year-end 2028 to meet the job and investment targets. "It's incredible that because our state's economy is doing so well in the current economic environment, we are able to reinvest in future projects funded out of the General Assembly," added Wilson.
"We are excited to welcome Rivian home to Georgia." Previously, Rivian has rejected offers from other states including Michigan and Arizona, and even turned down a $440 million incentive package from Texas. Evidently, holding out for the Georgia deal was the right thing to do for the Tesla rival. Previously, we've reported that Rivian plans to build at least 200,000 vehicles per annum at its new plant.
The new facility will certainly aid the company in cementing its position within the segment. The new journey won't be without its challenges, though. Ford recently began manufacturing the F-150 Lightning, an electric truck proving so popular that some would-be customers are having to wait until next year to get their hands on one. Like everyone else in the industry, Rivian is also facing problems related to the ongoing chip crisis.
CEO RJ Scaringe criticized chip suppliers for favoring more established carmakers. "I have to call up semiconductor supplier Y and say this is how many Supplier X gave us and get everybody comfortable because the system's unproven. It's really frustrating." Since going public in November 2021, Rivian's share price has suffered, falling by 75%. Hopefully, the new factory can assuage some of the issues plaguing Rivian.