Rivian is targeting Texas for second truck factory

[TruckElectric]

The electric vehicle maker Rivian is reportedly focusing on Texas—and the Fort Worth area—for its second electric vehicle factory, codenamed Project Tera.

According to Bloomberg, citing documents it obtained as part of an economic presentation made Tuesday, the Rivian factory might potentially create 7,500 jobs by 2027 and would be able to make 200,000 vehicles per year.

The second factory was confirmed last month by Rivian, within an announcement of a new $2.5 billion round of funding, with Amazon and Ford again contributing.

Fort Worth confirmed to Bloomberg that it is a finalist in the process. While the company hasn’t made a final decision, the Fort Worth site is the front-runner among many others, including Arizona.

It’s yet unclear what Rivian would build at the new factory. However, if response is strong to the R1T electric pickup and R1S electric SUV that arrive very soon, the company could be challenged to find the space for additional products. It’s already committed to a third model, the Rivian electric van—called RCV—that the company is already delivering to Amazon.


Rivian Amazon electric delivery truck

Rivian wouldn’t be the only automaker to set up shop in Texas. Tesla is in the final stages of readying its Austin factory—nicknamed Giga Texas—for production of both vehicles and battery cells. That facility will make the Cybertruck, the Semi, and Model 3 and Model Y vehicles for the Eastern half of North America.

GM also has a large factory in Arlington, Texas—between Fort Worth and Dallas—that makes large, body-on-frame SUVs, including the Chevrolet Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade.

Would a new Rivian factory in Fort Worth be a union plant? As President Biden places an emphasis on U.S.-made and union-made for electric vehicles, it’s not an impossibility, especially with the nearby GM plant a UAW facility and Ford a significant investor.

There’s just one other curve ball, however: Like Tesla, Rivian has a direct sales model, which means that it also won’t be allowed to sell its trucks in the Lone Star state without some odd workarounds.

Perhaps with tens of billions of dollars spent by Rivian and Tesla, Texas might be willing to change that rule at its next legislative session—in 2023.


https://www.greencarreports.com/new...eting-texas-for-second-electric-truck-factory

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[TruckElectric]

I guess Austin would be too close to Tesla ? Also Tesla has Austin sewed-up I think.
Rivian would look weak compared to Tesla in Austin.

 

[Ogre]

codenamed Project Tera.

Tera... that codename sounds familiar somehow...

 

[TruckElectric]

Hyperdrive
Amazon-Backed Rivian in Talks for $5 Billion Texas Plant
By
Edward Ludlow
August 10, 2021, 11:36 PM CDT Updated on August 11, 2021, 12:59 AM CDT

• 
  Factory would have capacity to produce 200,000 EVs a year
• 
  Project would create at least 7,500 jobs, documents show

Rivian Automotive Inc., the electric-vehicle startup backed by Amazon.com Inc., is in talks to invest at least $5 billion to build a factory near Fort Worth, Texas, according to a document obtained by Bloomberg News.

The factory -- codenamed “Project Tera” according to the document -- will be able to produce 200,000 vehicles a year, and will create at least 7,500 jobs by 2027. The presentation, made by the City of Fort Worth’s Economic Development Department to the City Council and dated Aug. 10, also includes a number of incentives including grants and county tax abatement of up to $440 million.

The $5 billion capital investment commitment from Rivian includes a minimum $2 billion in real property improvements and $1.6 billion in hard construction costs, the document shows. The company has committed to completing its initial investments by the end of 2024.

While a number of states and cities are still under consideration, the Texas site has become the front-runner for Rivian, according to people familiar with the matter. Rivian, and in particular Chief Executive Officer R.J. Scaringe, had previously been keen on a location in Arizona but concerns were raised around the available infrastructure, the people said, asking not to be identified discussing private information.

No final decision has been made and it could be some weeks before a deal is agreed with one of the cities or states, the people said.

Robert Sturns, the director of economic development for Fort Worth, said in an email that the city is “very excited to be a finalist for this project and looks forward to continuing the process.”

Sturns told members of the City Council during a presentation on Tuesday that several states were still under consideration by Rivian. The City of Fort Worth believes it offers a number of competitive advantages, including strong access to talent and the “ability to stand up production fast” it said in the document.

Texas, with its growing tech economy, access to ports and proximity to suppliers in Mexico. has caused some to call it the Detroit of the south. Toyota Motor Corp.’s North American headquarters are in Plano, and Elon Musk’s Tesla Inc. is building a new vehicle factory in Austin that is slated to be completed later this year.

Rivian didn’t immediately respond to a request for comment.

The Irvine, California-based automaker is at the head of a large pool of EV startups trying to catch up with Tesla. The company has caught attention with its planned battery-electric pickup and SUV and a deal to build Amazon 100,000 electric delivery vans by the end of the decade.

It has raised more than $10.5 billion from a stellar list of investors including Ford Motor Co. and T. Rowe Price. The company already operates a factory in Normal, Illinois but recently delayed the start of production on its debut EV due to supply-chain disruptions.

The proposed 2,000 acre Walsh Ranch site in Texas is located 12 miles southwest of downtown Fort Worth and on completion the plant would include 12 million square feet of vertical construction. Rivian will ensure minimum average annual salaries of $56,000, according to the document.

rivian-in-talks-to-build-ev-factory-near-fort-worth-texas

 

[TruckElectric]

Tesla’s Elon Musk gives Rivian invaluable advice on manufacturing

Tesla CEO Elon Musk gave electric vehicle startup Rivian a bit of invaluable advice regarding manufacturing efforts that could help the company’s longevity.

After reports of Rivian’s second U.S.-based automotive plant potentially landing in Fort Worth, Texas, Musk stated it might be more beneficial to ramp its first plant before committing to a second one, as unit costs can be difficult to keep affordable in the early manufacturing stages.

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



Musk may be the best person to ask this question as Tesla found this lesson out the hard way when ramping the Model 3. Tesla was not focused on developing and constructing a second factory at this time, as Giga Shanghai was not approved to begin production until July 2018. In 2017, however, Tesla was ramping its first mass-market vehicle, the Model 3, and financial specifics were dicey. Musk has called this time in Tesla’s history “production hell” and indicates that it was one of the most stressful times of his life. Tesla was nearly bankrupt at this time, as demand was high, but vehicle production costs were also astronomical. These costs wouldn’t begin to reduce or be consistent until Tesla ramped the vehicle significantly to a more sustainable run rate.

While Rivian’s financial situation may be different due to large funding contributors like deep-pocketed Amazon and Ford, the advice is seemingly invaluable. While Rivian has been plagued by the global semiconductor shortage and the COVID-19 pandemic for the past 18 months, the company has been forced to delay the deliveries of its first vehicle, the R1T. While manufacturing is in its early stages at the Normal, Illinois facility where the vehicle is being built, there is no indication that Rivian will not encounter challenges just because of its comfortable financial situation.

It will not be smooth sailing early on. There will still be bottlenecks due to parts shortages. Additionally, it may take some time to have the manufacturing staff trained up on the finer points of the job.

Interestingly, Musk commented with the advice, as Tesla is still currently in an ongoing lawsuit with Rivian that has to do with poaching employees. According to Superior Court of Santa Clara, California documents, the two parties met earlier this month, and the next case discussion meeting will occur in February 2022. Musk could be helping Rivian avoid potential downfall as Tesla’s mission is to accelerate the transition to sustainable energy, including all companies partaking in the clean energy revolution.

Rivian told Teslarati that it is surveying several potential regions across the United States for its second factory.

https://www.teslarati.com/tesla-elon-musk-rivian-manufacturing-advice/

 

[Bluechip506]

Will Rivian have dealerships? I don't think that is the plan. Then they will run into some of the same problems Tesla does selling in TX. Hopefully they go ahead with the factory in TX and can join forces with Tesla in getting the dealer lobby rules changed.

 

[TruckElectric]

Rivian could get a $440M tax incentive for 2,000-acre Texas facility

ByMaria Merano
Posted on August 17, 2021

Rivian could benefit from a $440 million tax incentive from the City of Fort Worth, Texas if it meets specific requirements. Rivian’s potential Texas factory promises to deliver at least $5 billion in direct capital investment and more than 7,500 new jobs to the city.

Fort Worth’s City Council was scheduled to vote on an economic development agreement with Rivian this Tuesday, August 17. The meeting also included a public hearing and Council votes to designate Rivian’s potential factory a tax abatement reinvestment zone.

Local media reported that the City Council approved a $440 million tax incentive package with Rivian. However, City Council records have not been updated and do not reflect the approval yet.

According to city records about Rivian’s Texas factory, Fort Worth proposed to enter into an Economic Development Program Agreement (EDPA) with the EV automaker to provide up to 15 annual grants, capped at $440 million. Rivian must comply with specific requirements to qualify for the tax incentives.

There are three investment requirements that Rivian must meet. First, Rivian’s three facilities for vehicle manufacturing, component manufacturing, and its development center must be completed by December 31, 2024. Second, Rivian must spend a minimum of $2.0 billion in construction costs by December 31, 2024, and $1.6 of the expenses must go toward hard construction.

The last requirement pertains to the minimum taxable appraised value of Rivian’s facilities. The exact wording of the condition is as follows: “On or before January 1, 2025, the Company must locate or cause to be located 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.”

Besides the investment conditions, Rivian must spend at least 15% of hard and soft construction costs with contractors from a Certified Minority and Women Business Enterprise (M/WBE) Company. If Rivian fails to comply with this requirement, there will be a 10% reduction in the maximum grant percentage.

Rivian must also meet employment and salary commitments, as seen below.

• Rivian must provide a minimum of 1,875 full-time jobs on the Project Site on or before December 31, 2025.
• Rivian must provide a minimum of 3,750 full-time jobs on the Project Site on or before December 31, 2026.
• Rivian must provide a minimum of 7,500 full-time jobs on the Project Site on or before December 31, 2027.
• The average annual salary for all full-time jobs required under the EDPA must be a minimum of $56,000.00.

Rivian’s proposed facility in the City of Fort Worth spans approximately 2,000 acres within Walsh Ranch. It is located near Interstate-20 and Bentley Road. The EV start-up plans to build on 12-million square feet of the site, including a vehicle manufacturing building, a vehicle component facility, and a development center.




https://www.teslarati.com/rivian-440-million-tax-incentive-tx-factory/

 

[TruckElectric]

Published on August 16, 2021

Some highlights of Aug. 17 City Council meetings:


City Council meeting, 10 a.m., Council Chamber on the second floor of City Hall.

• Members will vote on a resolution supporting the designation of a portion of I-35W for Atatiana Jefferson.
• Another resolution would rename and restructure the Minority and Women Business Enterprise Advisory Committee.
• Councilmembers will conduct a public hearing and vote on adopting an ordinance designating a tax abatement reinvestment zone for property at the intersection of I-20 and Bentley Road for construction of a vehicle manufacturing facility. The Council will also vote on an economic development agreement with Rivian Automotive LLC.
• There are two zoning cases on the agenda.

Though in-person comments will be allowed at the 7 p.m. Council meeting, residents may also comment by telephone on an agenda item or during the public presentation portion of the agenda. To sign up to speak, use the link on the agenda, call 817-392-6150 or email the City Secretary. Speakers before Council should keep in mind that state law prohibits councilmembers from engaging in dialogue with speakers during public comment periods.

Watch the meeting live on Fort Worth TV, either online, on TV or on Facebook. You can also watch the meeting via the Fort Worth TV video library.



https://fortworthbusiness.com/government/city-council-preview-for-aug-17/


https://bloximages.chicago2.vip.tow...-57e4-b18a-32ca66e28f4b/611c40daa270f.pdf.pdf

 

[Crissa]

Those are some weird benchmarks.

Spend at least two billion dollars? Sure, we just bought a bunch of robots!

-Crissa

 

[Friday]

So, does that mean Texas is going to change the "you can't buy directly from manufacturer" car rule for Rivian? They haven't done it for Tesla (yet).

 

[happy intruder]

So, does that mean Texas is going to change the "you can't buy directly from manufacturer" car rule for Rivian? They haven't done it for Tesla (yet).

if they can get the dems to stay in town long enough to vote.....hahahaha

 

[TruckElectric]

Will Rivian have dealerships? I don't think that is the plan. Then they will run into some of the same problems Tesla does selling in TX. Hopefully they go ahead with the factory in TX and can join forces with Tesla in getting the dealer lobby rules changed.

So, does that mean Texas is going to change the "you can't buy directly from manufacturer" car rule for Rivian? They haven't done it for Tesla (yet).

With 2 multi-billion factories employing around 17,000 it would look really bad for the Texas legislature not to try and help work out some kind of deal.

 

[Ogre]

With 2 multi-billion factories employing around 17,000 it would look really bad for the Texas legislature not to try and help work out some kind of deal.

You can buy direct from the manufacturer *if* the truck is built in Texas.

Or maybe you can only buy direct if you pick it up at the factory.

 

[TruckElectric]

You can buy direct from the manufacturer *if* the truck is built in Texas.

Or maybe you can only buy direct if you pick it up at the factory.

Not yet. Only applies to Texans

 

[Ogre]

Not yet. Only applies to Texans

Wasn't clear. Was thinking about what might be palatable to Texas legislatures who want to keep the auto-dealership lobby happy and attract multi-billion dollar investments.

Of course half a billion dollar incentive packages are pretty appealing too.

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