mobile-menu-icon
Ford Authority

Rivian EV Assembly Plant Spurs $1.5 Billion Incentive Package For Startup

Ford is in the midst of erecting the new and rather massive BlueOval City complex in Tennessee, a facility that will create at least 5,000 new jobs in the area. That project is also being supported by an $884 million spending package that consists of $500 million earmarked for incentives that will go directly to Ford, along with $384 million that will fund infrastructure projects, authority expenses, workforce development, and other services. Now, a new Rivian EV assembly plant in Georgia will also be receiving its own infusion of funds courtesy of a $1.5 billion dollar incentive package from the state and local government, according to Reuters.

In order to receive these funds, the new Rivian EV assembly plant must create at least 7,500 new jobs by 2028, while the automaker must also invest $5 billion of its own money into the new facility. According to Georgia’s Department of Economic Development, those employees will earn an average annual salary of $56,000, while the plant itself is tentatively expected to open in late 2024.

The future Rivian Georgia plant will be located east of Atlanta, but the project has faced fierce local opposition in recent months. Regardless, the automaker is pushing forward as it aims to vastly expand production in the coming years beyond its first plant, which is located in Normal, Illinois, though it has struggled mightily to do so amid the semiconductor chip shortage and other supply chain constraints.

Rivian managed to produce just 1,015 vehicles in 2021 after its first model – the R1T – entered production in September, though output has risen slowly since the beginning of the year. Last month, the company said that it’s on track to hits its goal of producing 25,000 vehicles this year after building 2,553 and delivering 1,227 in Q1, though that target was cut in half back in March. These struggles have also caused Rivian’s stock price to plummet in recent months, to the point where Ford lost $5.4 billion in its investment in the company from that stock’s peak value to now, though it could still profit from its original investment if it chose to sell those shares today.

We’ll have more on Rivian soon, so be sure and subscribe to Ford Authority for more Rivian news and non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

Comments

  1. Michael

    More tax payers money going to a private corporation, that is likely to not survive.

    Reply
  2. whypac

    Another example of the people in power making stupid decisions. Rivian currently cannot acquire the raw materials and parts to utilize the production capacity they already have at their existing plant.

    This being the case, giving Rivian money to build a second, brand new production facility is asinine.

    Reply

Leave a comment

Cancel