Texas city approves $440 million incentive package to land Rivian’s second plant

Fort Worth, Texas, city officials have finalized an incentive package to nudge Rivian Automotive to choose Forth Worth as a location and build its recently announced production plant for its R1T electric adventure truck and R1S electric adventure SUV in the united states. This will be the second electric vehicle manufacturing plant Rivian is building in the US in addition to Rivian’s factory in Normal. Rivian is ready to invest $5 billion into this project described in the document as “Project Tera”

The city council officials of Fort Worth unanimously approved up to $440 million in tax breaks on Tuesday, contingent on Rivian completing a number of objectives. These are some of the goals Forth Worth has set for the tax breaks to be effected.

By December 31, 2024 (Completion Deadline), Rivian must construct new facilities for i) vehicle manufacturing, ii) vehicle component manufacturing, and iii) a new development center at the Project Site

Rivian must spend a minimum of $2.0 billion in construction costs on the Project by the Completion Deadline.

On or before January 1, 2025, Rivian must put in place taxable business personal property (BPP) that is new to the City on the Project Site having a minimum taxable appraised value of $3.0 billion upon the first assessment

Rivian must provide a minimum of 1,875 full-time jobs on the Project Site on or before December 31, 2025. And must provide a minimum of 3,750 full-time jobs on the Project Site on or before December 31, 2026, provide a minimum of 7,500 full-time jobs on the Project Site on or before December 31, 2027. totaling 7500 full-time jobs by 2027

The average annual salary for all full-time jobs required under the EDPA must be a minimum of $56,000.00.

The city council also nominated Rivian to qualify for a state enterprise project designation that would allow for Texas sales and uses tax refunds of up to $1.25 million over a five-year period.

The Fort Worth factory would be capable of producing 200,000 vehicles per year, city records show.

Rivian has yet to announce where it intends to build its second plant.

Rivian is also considering land east of Mesa, Arizona, near Gold Canyon, for its new EV plant.

Elon Musk commented on Rivian’s efforts to build a second US factory for the production of its electric vehicles soon to begin deliveries, The R1T electric adventure truck, and the R1S electric adventure SUV.
In a comment tweet to Teslarati’s announcement of Fort Worth, TX as frontrunner for  Rivian’s $5 billion U.S. second plant, Tesla’s CEO suggested wisely that Rivian start working in their first plant before establishing a second.

“I’d recommend they get their first plant working. It’s insanely difficult to reach volume production at affordable unit cost.”

Hanson F.https://thevolter.com
Hanson is a lover of electric cars especially Rivian. He is a contributor for The Volter as well as other news hubs

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