Rivian, an electric vehicle manufacturer, plans to invest $5 billion in a 10,000-acre facility

Rivian, an electric vehicle manufacturer, plans to invest $5 billion in a 10,000-acre facility

According to a corporate document given by the state economic development officials, Rivian aims to invest $5 billion in its second United States electric vehicle assembly plant. According to an updated economic development document reviewed by Reuters, the plant, named “Project Tera,” needs an anticipated 10,000 acres of land. Still, economic development authorities say finding a piece of land that vast is exceedingly unlikely. Rivian was not named in the first proposal, which stated that the facility would only require 2,000 acres. For instance, BMW’s (BMWG.DE) assembly factory in South Carolina covers around 1,200 acres.

According to the amended proposal, manufacturing at the Rivian plant is expected to begin in the second quarter of 2023, with construction starting in the fall of 2021. The COVID-19 epidemic, according to numerous sources familiar with the situation, will certainly push that deadline back by up to 6 months. Rivian was unavailable for comment. As China, Europe, and other countries around the world mandate fewer carbon emissions, automakers are rushing to produce electric vehicles. Traditional carmakers such as General Motors Co (GM.N) and Ford Motor Co (F.N) are renovating plants for electric vehicle production in the United States. At the same time, Tesla Inc (TSLA.O), Foxconn, Taiwanese contract manufacturer (2317.TW), and many startups already have or are planning to create them.

The exact location of the new Rivian factory has yet to be determined. Still, land east of Mesa, Arizona, around Gold Canyon, is one of the sites under consideration, according to two persons familiar with the situation. According to one of the individuals, Rivian CEO R.J. Scaringe has spoken with Doug Ducey, Arizona Governor, about the project. Ducey’s administration and Arizona Commerce Authority did not respond to requests for comment. The Greater Phoenix Economic Council did not respond to a request for comment.

Due to lower taxes, a cheaper cost of living, and the absence of hurricanes, floods, and other severe weather that have harmed plants in other states, Arizona has become a favored destination for automakers. Rivian already has a modest engineering and testing facility in Wittmann, Arizona, which is about 35 miles (56 kilometers) northeast of Phoenix. Electric vehicle startups Nikola Corp (NKLA.O) and Lucid Group Inc (LCID.O) have constructed or are developing assembly plants in Arizona’s Pinal County. In contrast, Nissan Motor Co (7201.T) and Volkswagen AG (VOWG p.DE) have vehicle testing grounds in the region designated the Arizona Innovation and Technology Corridor.

Officials from Pinal County said they hope to attract additional green-energy initiatives in the coming years, but they wouldn’t comment on the Rivian facility. Rivian wanted to establish a second U.S. plant that featured battery cell production, Reuters said last week, citing anonymous sources, adding that it might be revealed in September and break starting next year.

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