Rivian To Set Up Second EV Plant In Texas

(RTTNews) - Amazon's electric vehicle business, Rivian Automotive Inc is going to invest $5 billion in a Texas project to make its second manufacturing plant.

According to reports, the plant will be set up in Fort Worth. The factory will be churning out 200,000 vehicles per year and the plant promises to create as many as 7,500 jobs by the end of 2027 with an average annual salary of $56,000.

Last month, Rivian confirmed that they will be setting up another plant after a new round of funding by Ford Motor co. (F) and Amazon.com, Inc (AMZN) worth $2.5 billion.

Project Tera - the name of the plant, will have a $2 billion real property investment and $1.6 billion in construction. The initial investment is going to be done by the end of 2024. The City of Fort Worth's Economic Development Department has also prepared a $440 million County tax abatement plan for the plant. Robert Sturns, the director of EDD of the city said that the city is "very excited to be a finalist for this project and looks forward to continuing the process."

The location proposed is a 2,000 acre site, almost 12 miles from the town. The plant is supposed to be a 12 million square feet area.

According to reports, Rivian CEO, R. J. Scaringe was interested in Arizona but the infrastructure and logistics has made the company change its mind.

While it is not sure which vehicle will be in focus in the plant, people aware of the matter think that it's R1T Electric pickup truck and R1S SUV model will take up most of the space in its factory in Normal, Illinois, when they go into production. The company has also promised 100,000 Rivian Electric Vans to Amazon.

Texas is slowly becoming the hub of electric vehicle makers as Tesla (TSLA) is also going to unveil its Austin plant this year. Toyota Motor corp and General Motors also have their HQs in the 'Detroit of South'.

Rivian has already raised $10.5 billion and if not for a disruption in the supply pipeline, its first vehicle would've been unveiled by now.