Rivian is receiving a state incentive from Georgia for its upcoming production facility that it will use to boost making the plant to help its manufacturing ventures. The company intended for this facility to support its production achieve its peak deliveries, and bring more electric vehicles to the company.
Currently, Rivian is receiving overwhelming orders for its EVs, with its preorders for the electric pickups having massive numbers.
Rivian Receives State Incentives for its Georgia Facility
Reuters reported that Georgia is extending a hand to Rivian for its production facility for electric vehicles, bringing as much as $1.5 billion to state incentives for the company to utilize. However, there is a catch for this budget allocation, as the company will have until 2028 to complete the plant to have full access to the money.
Otherwise, it will have significant reductions or even take it back from the EV company.
It means that Rivian will have to secure everything it needs on its end and create the plant now.
The facility opens up massive opportunities for Rivian, Georgia, and people who aim to have electric vehicles and use them for their travel needs and other applications.
When Will Rivian Complete its Georgia Facility?
Rivian has initially announced that it would bring the production to start by the summer of 2022. Still, it got a delay until 2024 to secure everything it needed, including logistics and other factors that come into play. From 2024, Rivian has four years to complete the plant and secure the funding from Georgia, having significant savings in creating their manufacturing plants.
Rivian and its Electric Vehicles
Rivian is at a slow pace for its electric vehicle production despite preorders on its EVs, seeing more than double the number of interested customers for its technology. In the 2021 round-up of the produced cars by Rivian, it only brought 1.015 units for its EVs, particularly with the R1T electric pickup that saw more preorders.
The plans made by the company focus on bringing more EVs to the public. Its purchase intends for its use on the roads in the future. The goal is to build 400,000 electric vehicles a year, which can be achieved when the company already operates in its Georgia plant that it aims to make for the company.
It will be the 2nd production facility of the company, and it will take them as much as $5 billion to create the plant.
Considering the $1.5 billion state incentive for Rivian, the electric vehicle startup will only have to muster up $3.5 billion for the plant to build and create for its production. For now, the development of the factory gets a Georgia state incentive, and it will help minimize the budget and costs it needs, helping boost its erection.
Related Article : Rivian to Reorganize its Production for Faster Output, But Some Users Will Have to Wait Longer
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Written by Isaiah Richard
