Skip to main content

Rivian (RIVN) wins in Georgia as EV maker gets green light to build $5B facility

EV maker Rivian (RIVN) just got a huge break. Despite opposition, the Georgia Supreme Court declined to hear an appeal contesting the legitimacy of Rivian’s expected property tax breaks for its new $5 billion EV facility in the state.

Rivian first announced plans for a massive 2,000-acre, $5 billion electric vehicle plant in Georgia in December 2021.

Once fully operational, the facility will be capable of producing up to 400,000 EVs annually. In comparison, its Normal, IL, plant has a maximum production capacity of 150,000 EVs per year.

At the time, Rivian said the Georgia facility would be home to its next generation of products. Initial plans called for construction to begin last summer, with the start of production (SOP) by 2024.

Despite this, Rivian has yet to break ground officially. The facility has faced its fair share of opposition, with five residents suing the Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton Counties and the company it hired to begin grading this past October.

Before that, seven members of Rivian opposition group Morgan County Land, Sky & Water Preservation challenged aspects of the local property tax incentives being offered to the EV maker.

Rivian-Georgia-EV-facility
Rivian Georgia EV facility site plan (Source: Rivian)

A Morgan County judge sided with the Rivian opposition group in September, rejecting roughly $700 million in local property tax breaks, a central piece of its over $1.5 billion incentive package, which includes tax breaks, grants, free land, and infrastructure.

Rivian’s incentive package is the second largest in Georgia state history, behind The Hyundai Motor Group’s $1.8 billion in similar benefits for its $5.5 billion, 3,000-acre EV assembly plant in Bryan County.

In April, a panel of judges ruled in favor of JDA and the State of Georgia on four of five aspects of the legal controversy over the majority of Rivian’s incentive package.

However, the panel declined to validate the bonds at the heart of the $700M in local tax breaks Rivian expected to receive. The following month, the court threatened the factory and asked Rivian if it wanted to terminate its agreement with the state and JDA over the facility if the tax breaks weren’t included.

Rivian-Georgia-EV-facility
Exterior rendering of Rivian’s future Georgia facility (Source: Rivian)

Rivian wins big on Georgia EV facility

Rivian CEO RJ Scaringe told the Atlanta Journal-Constitution that Rivian was “committed to this state and this project.”

Top comment by James K

Liked by 23 people

This is much welcome news for Rivian. Hopefully the plant construction can begin with haste. They really need this factory to have any hopes for sustained success. A lot is ridining on that R2 product and being over two years away is making investors nervous.

View all comments

Georgia’s highest court said it would let stand an appellate court’s ruling that primarily favored the state and JDA, paving the way for reinstating hundreds of millions of dollars in tax savings for Rivian.

Although a formal groundbreaking ceremony has yet to occur, the site is currently being graded. Production is now expected to begin in 2026, building Rivian’s next-gen R2 series products.

Rivian Georgia EV facility
Rivian R1S electric SUV (Source: Rivian)

The Georgia facility is expected to employ 7,500 workers while spurring thousands of supplier and related jobs, according to Georgia Department of Economic Development Commissioner Pat Wilson. He explained:

A project of this scale attracts suppliers and builds a thriving community that can support more local businesses. The benefits will be felt across the e-mobility ecosystem and the dozens of other industries its supply chain touches.

Rivian recently shattered analyst expectations, delivering 12,640 EVs in the second quarter while producing nearly 14,000. The EV maker introduced its in-house Enduro drive units and LFP battery packs this past quarter, which Rivian says will help streamline production. Rivian aims to produce 50,000 EVs total for the year, more than doubling from 2022.

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising

Manage push notifications

notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications
notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications