Rivian has announced the incentive package that it has managed to negotiate with the state of georgia to set up its second electric car factory in the United States. The $1.5 billion (1,427 million euros) is the amount that you can receive if you finally complete your project in the established time and manner. The 7,500 direct jobs and almost 8,000 indirect jobs that Rivian promises are a great benefit to the community both in terms of employment and in return in the form of taxes and also place the state of Georgia at the forefront of the electric vehicle revolution.
Earlier this year, shortly after starting production of its first electric cars at Normal’s factory in Illinois, Rivian announced a $5 billion investment in a new facility in Georgia, east of Atlanta. There he had acquired a huge piece of land (8,093,713 square meters) where the firm hopes to start manufacturing its electric cars. in the year 2024 up to a production capacity of 400,000 units per year. Rivian has yet to confirm which vehicles will be produced at the massive plant he has envisioned.
Now, Rivian announces that it has managed to negotiate with the state of Georgia an incentive package valued at $1.5 billion (1,427 million euros) that will come true if the company completes the planned investment of 5,000 million dollars, for which a recovery period of 25 years is established. This amount will be made effective through tax credits, reductions and subsidies for land preparation and in support of job training for workers by the state, according to a statement issued by the Georgia Department of Economic Development (GDEcD) and the Joint Development Authority (JDA) of Jasper, Morgan, Newton and Walton counties.
The company will create 7,500 direct jobs and another 7,978 indirect. The average salary these employees will receive is $56,000 per year and 100% of it will receive shares of the company. The four counties will receive about $300 million in tax revenue from Rivian, compared to the $2 million they would get if the project didn’t go ahead.
Pat Wilson, commissioner of the Georgia Department of Economic Development, considers that “it is a great victory for the state that has always prioritized job creation.” It will also bring multiple positive effects for families, schools and communities. “Rivian will not only employ thousands of Georgians in good-paying jobs in the future, but will serve as a welcoming Georgian business community,” adds Wilson.
Rivian’s investment would be the largest economic development project in Georgia since World War II. The Peach state has been overlooked by several Asian and European automakers, and has only one vehicle assembly plant, a Kia Motors plant in West Point, near the Alabama border. Korean manufacturer SK Innovation has built a $2.6 billion factory in eastern Georgia to make batteries, from which, for example, those for the Ford F-150 Lightning electric pick-up will come out.