Tax Breaks Approved for $5 Billion Rivian Automotive Factory In Central Texas

City officials have approved a $440 million tax incentive package that could lead EV manufacturer Rivian Automotive to build a huge plant on the site of a former ranch outside Fort Worth, Texas.
Rivian R1T 6 photos
Photo: Rivian Automotive
Rivian R1SRivian Automotive plant in Normal IllinoisRivian Automotive electric pickup truckRivian Automotive factoryRivian Automotive factory
If the plan goes through, Rivian says the plant would result in the creation of 7,500 jobs by 2027, and that would make the company one of the largest employers in the region.

Rivian currently has plans to assemble the R1T, R1S, and their line of commercial delivery vans at a factory in Normal, Illinois. That plant was once the site of production for the Mitsubishi Eclipse.

The factory in Illinois Normal factory has two separate production lines producing vehicles. One is dedicated to the R1 and another line focused on commercial vans. Amazon ordered 100,000 of the Rivian electric vans and deliveries starting in 2021.

To date, the upstart EV automaker has raised upwards of $8 billion from heavyweight backers, including Ford Motor Company, Cox Automotive, Fidelity Management, and most critically, Amazon’s Climate Pledge Fund.

The Fort Worth plant would cover some 2,000 acres of undeveloped land and city officials say a master-planned community in the area will also include homes for approximately 50,000 residents.

We reported earlier that Rivian was eyeing Arizona as a site for the huge plant, but concerns about the available infrastructure there may have brought that idea to a halt. Texas offers major advantages for Rivian thanks to access to ports, proximity to Mexican suppliers and a nearby tech-centered economic boom.

Rivian CEO, RJ Scaringe, recently notified customers that deliveries of the R1T electric pickup truck and R1S SUV will be pushed back for “several more months.” Scaringe said those delays are largely a result of impacts of the pandemic - chief among them a global squeeze on the availability of semiconductor chips.

He did say R1T deliveries will begin in September 2021 and that deliveries of the R1S begin shortly thereafter.
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