Rivian has provided $ 1.5 billion incentive packages to Georgia

Electric-pickup maker Rivian Automotive will receive এবং 1.5 billion in state and local incentives to build a giant plant near Atlanta, strengthening the company’s production efforts despite local resistance to the project.

The largest package in Georgia’s history includes tax credits, termination and subsidies such as site preparation and state-of-the-art job training assistance, the Georgia Department of Economic Development said in a statement Monday.

Irwin, California-based Rivian is a high-profile, well-paid newcomer to the growing pack of EV makers. The company’s initial public offering in November was the sixth largest in U.S. history, generating more than $ 13 billion in funding. However, due to supply-chain pressures, Revian Normal has struggled to increase production of its products at an existing plant in Illinois.

The $ 5 billion Georgia plant is the crown jewel of an ambitious growth strategy that Rivian hopes will include new consumer models beyond its existing offerings: a battery-electric pickup called the R1T and an SUV called the R1S.

Rivian called the deal a “milestone” in progress towards building a second plant.

“The long-term economic partnership promises the people of Rivian, the people of Georgia and their children the value of their children,” the automaker said in an email statement.

Rivian will receive $ 476 million in statutory tax credits if it fulfills its promise to create a total of 7,500 jobs by the end of 2028. If that doesn’t happen, it’s still a way to get more involved with the taxpayers, “said Pat Wilson, Georgia’s economic development commissioner. . Georgia is setting aside another 8 288 million for consideration in the form of site preparation and job training programs. Plant hosting makes up the remainder of the tax reduction package from four counties – about $ 700 million in 25 years.

‘Net Win’

Wilson said the counties would still collect about $ 330 million in tax revenue from Rivian, versus the $ 2 million they would receive if the project did not happen.

“It’s a huge net win,” he said. “The state always prioritizes jobs – if you create jobs in the state, we encourage those jobs.”

About 45 minutes before Atlanta, some residents living near the Georgia Routledge site returned against the project, citing concerns about traffic, environmental damage, and continued urban sprawl. A Facebook group dedicated to fighting the project has garnered nearly 3,000 members and received political support from former U.S. Senator David Purdue, who is challenging incumbent Governor Brian Kemp in the Georgia Republican Governorate primary in May.

Opposition was strong enough that the state adopted the approval process to consolidate local zoning and consent and to stop the threat of project delays.

Rivian’s investment will be Georgia’s largest economic development project since at least World War II. The state of Peach has been passed by several Asian and European car manufacturers and has a Kia Motors plant at West Point near the Alabama border, with only one vehicle assembly plant. South Korean battery maker SK Innovation has built a $ 2.6 billion plant in East Georgia to generate energy for electric vehicles, including Ford’s F-150 Lightning pickup.

The Rivian site promises to create more than 7,500 jobs, with a final goal of producing 450,000 vehicles annually. The average annual wage of Rivian workers will be $ 56,000 and the project will create about 8,000 indirect jobs, according to the state.

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

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