Rivian Automotive Inc. (NASDAQ:RIVN) is reportedly set to break ground on the $5 billion production facility in Georgia after facing multiple delays.
Rivian's 2,000-Acre Site
The company's factory would be spread across a 2,000-acre site an hour away from Atlanta, The Detroit News reported on Monday. Rivian will break ground on the site during a ceremony on September 16, the report suggests.
"We look forward to continuing our work with our partners and surrounding communities as we strive to provide thousands of new, good-paying jobs in this fast-moving industry," a Rivian spokesperson cited in the report said.
Rivian's $1.5 Billion Incentive Package, Plant Will Begin Production In 2028
The plant also sees Rivian receiving over $1.5 billion in incentive packages from the government in Georgia, a majority of which kick in provided that the automaker can build the plant and meet the hiring requirements.
Rivian, meanwhile, says the plant will be production-ready in 2028 and will serve as a crucial element of the company's upcoming R2 crossover SUV's production plans.
Rivian's $100 Million Revenue Shortfall, Trump's Tariffs Add To Cost
The news comes as Rivian announced a shortfall of over $100 million in revenue, which the company earned via selling the ZEV credits. However, with the Trump administration scaling back on CAFE norms, automakers face less pressure to meet emissions standards and could be less inclined to buy the credits, resulting in the loss of this lucrative revenue stream for Rivian.
Rivian also faces additional costs due to the Trump administration's tariffs, with the company announcing that the tariffs could add ‘a couple of thousand dollars' to the production costs of each unit during the company's second-quarter earnings call.
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