Rivian will get a $1.5 billion incentive package for plant in Georgia

Rivian Automotive Inc will get $1.5 billion in state and local incentives and tax credits for an electric vehicle plant it plans to construct in Georgia, the state and the automaker said on Monday.

The $5 billion plant shall employ some 7,500 workers once it is operative. Workers will be paid an average annual salary of $56,000, Georgia’s Department of Economic Development said.

A Rivian spokesperson said the company intended to open the plant in 2024, pending permit applications and approvals.

Under this agreement, the automaker has time until the end of 2028 to fulfill the 7,500 jobs target and $5 billion investment target and get the full amount of incentives and tax savings.

The plant in question, located east of Atlanta would be the automaker’s second U.S. assembly plant, after its plant located in Normal, Illinois.

The company, which is 20% owned by Amazon.com Inc (AMZN.O), has launched three vehicle models in the U.S. – its R1T pickup, R1S SUV and EDV delivery van for Amazon – but has struggled ramping up production amid supply chain constraints, including a shortage of semiconductors. read more

Wall Street investors have been disappointed with the company’s progress and vehicle order numbers, and Rivian shares have dropped more than 75% since the company went public in mid-November.