Rivian Looking to Open New Factory in Texas
【Summary】The project will reportedly cost around $5 billion and could create roughly 7,500 jobs.
Rivian is one of the more exciting all-electric startups to actually come out with enticing EVs. With the R1T pickup truck and R1S SUV, the automaker has cemented its place in the segment as a serious option. While Rivian doesn't have any electric vehicles on sale at the time of writing, the automaker is expecting a large boom in orders and is looking to build a second factory in Texas. According to Automotive News, the automaker is considering a location near Fort Worth.
New Factory Possible
The factory has an internal name of "Project Tera" and will have the ability to manufacture 200,000 electric vehicles a year. A new factory will also result in 7,500 new jobs by 2027. As one would expect, Rivian will receive hefty incentives and grants from Forth Worth to the tune of $440 million. Rivian's $5 billion investment includes a minimum of $2 billion into real property improvements and $1.6 billion in hard construction costs. Initial investments will reportedly be completed by the end of 2024.
The outlet reports that a number of states and cities are still under consideration for Rivian's factory, but Texas has become the front-runner. Apparently, CEO R.J. Scaringe was looking into Arizona, but concerns were raised about the state's available infrastructure. A final decision hasn't been made, but one could be made within a few weeks.
Texas has become a prime location for automakers as it gets manufacturers close to Mexico and access to ports. Toyota has its headquarters in Texas, while Tesla is looking into building a new vehicle factory in the works in Austin. Tesla's factory is expected to be finished at the end of the year.
Is A Second Factory Smart?
While Rivian hasn't officially announced that it's working on a second factory, the report is an interesting one as the automaker hasn't even begun selling vehicles yet. While being caught on the wrong foot could be the reason why the automaker is looking to focus on getting a second facility up and running, it seems strange since the brand hasn't even gotten its first factory up and going to full capacity yet.
Then, there's the issue that Rivian has delayed its electric vehicles because of supply chain issues. Elon Musk weighed in on the possible report by tweeting out that Rivian should get their first plant working before switching its focus onto a second facility. Seeing as how Musk and Tesla have first-hand experience at having production issues, we'd say his advice is good.
Either way, the R1T and R1S are some of the more exciting EVs and we have high hopes for the vehicles. The R1T and R1S Launch Editions are all accounted for and are supposed to be delivered before the end of the year. The automaker's Adventure Package should be on the road by next January.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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