Rivian Seeks to Build a US$5 Billion Facility in Texas

Category: News
Published: 2021-09-17
Rivian Seeks to Build a US$5 Billion Facility in Texas

TEXAS – Electric vehicle manufacturer Rivian is considering the Fort Worth region to build a US$5 billion facility. The factory, described in official document as “Project Tera,” would create at least 7,500 jobs by 2027 and produce around 200,000 vehicles a year. The plant would be located on a 2,000-acre site West of Fort Worth.

To encourage Rivian, the Fort Worth City Council voted unanimously to approve up to US$440 million in tax breaks. The city council also nominated Rivian to qualify for a state enterprise project designation that would allow for Texas sales and use tax refunds of up to $1.25 million over a five-year period. Startups such as Rivian operate in a cash-constrained environment given the huge capital needs associated with the production process.

Rivian said in a statement it was in discussions with multiple locations as part of a competitive process for what would be its second U.S. factory but added that those processes did not indicate a final decision. The company has already discarded North Carolina.

Rivian has a factory in Normal, Illinois. Additionally, the company is developing the R1T, an EV truck that would compete with Tesla’s Cybertruck and Lordstown Motors’s Endurance. Its product portfolio also includes the R1S, an electric SUV under development.

BORDERNOW MAGAZINE