ATLANTA – Rivian will announce on Thursday that it is building $5 billion the battery and assembly plant in east Atlanta, which is expected to employ 7,500 workers, sources briefed on the decision said. Related press.
Sources say the factory can grow up to 10,000 workers, which would make it one of the largest auto assembly complexes in the United States, rivaling giants like 11,000 workers. BMW car complex in Spartanburg, SC, and FordThe factory employs 8,600 workers in Louisville, Ky.
Rivian would be the largest industrial announcement in Georgia history, surpassing 4,400 workers That The complex opened in West Point in 2009. Georgia has had a number of failed auto factory hires. Rivian will give Georgia Governor Brian Kemp another point to bolster his claim that he is a brilliant steward of Georgia’s economy, even as he faces Republican and Democratic challenges. owner when he runs for election next year.
City of Fort Worth, Texas, offers Rivian a $440 million incentive packages to attract the plant over the summer, while published reports suggest that Rivian has also looked at locations in Arizona and Michigan.
Rivian told Fort Worth its factory will produce 200,000 vehicles a year, with workers paid at least $56,000 a year.
The Atlanta Journal-Constitution was the first to report Rivian’s decision.
Founder and CEO Robert Scaringe told Bloomberg Television In November, the ability to recruit good workers is the most important factor in the decision. Rivian’s existing plant in Normal, Ill., like most auto plants that have opened in recent decades, is not an incorporated company.
Georgia officials are unlikely to detail the full incentive package offered to Rivian on Thursday, but the company could maximize what Georgia calls a “major project tax credit” for companies. hire at least 1,800 people or invest at least $450 million. That state income tax credit could be worth $118 million. Local governments have the ability to reduce property taxes.
Kia received more than $450 million in incentives for its plant in southwest Atlanta. Georgia has promised $300 million in incentives for a $2.6 billion battery plant with 2,600 workers under construction by SK Innovation in Commerce, Ga., northeast of Atlanta.
Rivian currently has plans for two consumer models — the R1T pickup with a base price of $67,500, and the R1T pickup. R1S SUV, with a base price of $70,000.
Amazon, which partially owns the company, has ordered 100,000 delivery vans, bringing in Rivian Commercial vehicle business.
Rivian is awash with cash following a $11.9 billion stock offering on November 10 that took the company public, allowing it to finance the new factory. Its market value is almost 95 billion dollars, more Synthetic engine or Ford.
The company argued that tram Adoption is at a “tipping point” and it’s well-positioned for success as trucks and SUVs have long been the most profitable sales vehicles. But some analysts question whether it needs a plant other than the tree Mitsubishi The Illinois plant that Rivian bought for $16 million in 2017. Rivian says it has an annual capacity of 150,000 vehicles, but is also looking to expand there.
Sam Abuelsamid, lead mobile analyst at Guide house Details, who said Rivian may also be looking for a production site in Europe.
Given the size of the plant in Georgia, Abuelsamid hopes it will make other parts for the vehicle, similar to electric vehicle leader Tesla, which is making seats at its plant in Fremont, Calif.
Rivian has cash in the bank, but it will quickly run out unless it starts delivering cars and generating cash, jeopardizing its well-liked position in the market, Abuelsamid said. The company needs more retail customers and commercial vehicle buyers than Amazon, he said.
“If physical deliveries don’t start to pick up, the market could turn against them like it does with some other electric vehicle startups that aren’t named Tesla,” Abuelsamid said. “Unlike Tesla, Rivian will face serious competition in a much shorter time frame than the nearly decade-long start Tesla has had.”
Ford and GM intend to start selling their own electric pickup truck in the next year or two, while Tesla also plans a new pickup. It’s part of a wave of investment in electric vehicles, with SK’s $5 billion battery plant in northeast Atlanta being just one example. In September, Ford announced it would spend $11.4 billion to build three battery plants and an assembly plant in Kentucky and Tennessee.
Automotive consulting firm LMC expects U.S. all-new vehicle sales to reach nearly 400,000 units this year, nearly double last year’s figure. But they still only account for about 2.6% of sales. The company expects sales to grow to over 730,000 next year and more 2 million by 2025. Even at 2 million, electric vehicle sales would still be only about 12% of the US new vehicle sales.