Rivian has secured final approval for its second US manufacturing plant. The company plans to borrow up to $15 billion through the issuance of taxable bonds through the Joint Development Authority of Jasper, Morgan, Newton & Walton Counties to fund the construction. This financial move is part of an incentive package designed to support the construction of the facility, with Rivian committing to purchasing the bonds as they are issued.
The upcoming Georgia plant, located east of Atlanta, is slated to begin construction in early 2024. The company, already operating a plant in Normal, Illinois, aims to invest $5 billion in the new facility and generate over 7,500 jobs, while ramping up production to a maximum capacity of 400,000 vehicles annually by 2030.
The approval for the Georgia plant marks a significant milestone for Rivian, as it navigated through legal challenges and opposition to get to this point. The Supreme Court of Georgia declined an appeal by local residents, upholding the $1.5 billion incentive package, the largest in state history, comprising tax credits, abatements, and subsidies. Rivian has committed to making payments in lieu of property taxes, starting at a minimum of $300 million through 2047, potentially increasing if the company exceeds its initial $5 billion investment.
The new plant will be equipped to produce 200,000 EVs annually during the initial phase, and aims to double that capacity by 2030. Rivian plans to produce its new R2 platform at this facility, which it will debut in 2024.
Despite the progress, legal challenges from the No2Rivian group remain, attempting to compel adherence to local zoning standards and permitting processes. However, with the closing of the deal and the issuance of bonds, Rivian, the State, and the Joint Development Authority signal a strong commitment to completing the project. The groundbreaking ceremony is scheduled for early next year.