Rivian gets some good news that will help it expand faster.
Rivian, a company that makes electric cars, is trying to get permission from the state of Georgia in the United States to build a second manufacturing plant there.
Key Highlights
- The authorities in the US state of Georgia, where Rivian wants to build its second manufacturing plant, have just given it a gift.
- Sensing that events could spiral out of hand, the local authorities, who are staunch supporters of the Rivian project, recently appealed to the state, requesting that the site be appropriated.
- The letter was signed by the four members of the Joint Development Authority for Jasper, Morgan, Newton, and Walton counties, which will be home to the Rivian automobile manufacturing plant.
- According to JDA, the Rivian Site project will require a $5 billion investment and is expected to generate approximately 7,500 jobs.
- The project is set to begin this summer, with the first vehicles rolling off the assembly line in 2024.Rivian's next generation of electric vehicles will be assembled and battery-powered in the new assembly plant and battery factory.
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All automakers are vying for an edge in the current EV competition. It's important for them to get any advantage they can, especially if it could change the way people think about the industry.
People who work for Rivian Automotive, which is trying to show investors and customers that it can keep up with more production, know this all too well, though.
On March 10, when the Irvine, Calif.-based automaker releases its financial results, the company will face a significant test. Following Rivian's announcement in December that it was having problems with bottlenecks and was having a chip shortage, analysts will be very interested in Rivian's output.
However, with less than two weeks until the major test, the pressure appears to be reducing slightly. A significant impediment to its development objectives has been removed.
Rivian now operates a single facility in Normal, Illinois. The authorities in the US state of Georgia, where Rivian wants to build its second manufacturing plant, have just given it a gift.
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Heard 'No Longer'
The Georgia Department of Economic Development said this week that the state will take over the contentious Rivian Automotive Development Project near Stanton Springs, about a half-hour east of Atlanta.
By combining these phases, we hope to simplify the entire project process, ensuring that community members have a significant voice throughout, "Commissioner Pat Wilson said," as quoted by Morgancountycitizen.com.
"We will keep talking to our city and county governments to make sure that every complaint and question is heard and answered."
Local governments will no longer be required to hold public hearings on zoning and other contentious issues. In this case, the Morgan County Planning Commission and Board of Commissioners will not be able to rezoning the land because the state owns it.
Rivian's initiative has encountered significant local opposition. According to local news, an anti-Rivian organisation has planned protests in the region to criticise the transformation of the 2,000-acre property into a massive automobile production complex.
The opponents, who have marched numerous times with signs reading, 'We against Rivian Assembly's plant,'" Rivian was scheduled to appear at a Feb. 24 hearing at which he was to address the community's questions and concerns. That proceeding has been postponed.
Rivian's rezoning petitions affect a lot of land, so opponents want city officials to put a lot of restrictions on them.
Sensing that events could spiral out of hand, the local authorities, who are staunch supporters of the Rivian project, recently appealed to the state, requesting that the site be appropriated.
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TheStreet Makes a Recommendation
A Feb. 18 letter to Wilson stated that "it has become clear that compliance with the myriad state, federal, and municipal laws, rules, and policies governing the site would demand a greater level of resource mobilisation than we can provide locally." The letter was signed by the four members of the Joint Development Authority for Jasper, Morgan, Newton, and Walton counties, which will be home to the Rivian automobile manufacturing plant.
"We recognise that the State of Georgia will require title to real estate in order to carry out this process."
Concentrate on Plant Construction.
The answer did not take long to arrive.
Wilson responded on Feb. 21: "We appreciate your recent letter (...) suggesting that the State of Georgia consider taking the lead on the Rivian Automotive Project's next steps."
"We believe that by unifying public input and opinion into a single venue, rather than three distinct jurisdictions with their own rules, regulations, and ordinances, the state will be able to contribute extra resources to improve the process."
This is a significant relief for Rivian since it avoids a lengthy procedure that may have been costly both monetarily and in terms of resources required. The automaker can now concentrate on operations.
Rivian is mainly adhering to its timeline and avoiding the predicament in which rival Tesla (TSLA) (Get Tesla Inc Report in Germany) finds itself.
Elon Musk's company hasn't been able to start making cars at its Berlin plant, which is a big part of its European plans, because of environmental concerns.
According to JDA, the Rivian Site project will require a $5 billion investment and is expected to generate approximately 7,500 jobs. The project is set to begin this summer, with the first vehicles rolling off the assembly line in 2024.
Rivian's next generation of electric vehicles will be assembled and battery-powered in the new assembly plant and battery factory. When production is all the way up, the factory will be able to make up to 400,000 cars a year.
A Rivian spokeswoman said in an email statement that it's critical for us to succeed in Georgia, "it's critical that we spend time listening to local issues, addressing them as effectively as possible, and working hard to be the kind of neighbour the community desires."
This spring, we'll conduct events with local and state officials to introduce the community to our goods, our employee team, and available job possibilities in the area.
Rivian manufactures two models at the moment: the R1T pickup truck and the R1S SUV. The manufacturer, which has an outstanding list of stockholders -Get Amazon.com, Inc. Report and Ford (F)-Get Ford Motor Company Report, among others), recently removed one of its senior production managers with the goal of fixing its production problems.
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