Rivian Automotive, an electric car start-up backed by Amazon.Com Inc (AMZN.US), is in talks to invest at least $5 billion to build a plant near Fort worth, Texas, according to media documents. Rivian did not immediately respond to a request for comment.
According to the document, the factory, code-named "Project Tera", will produce 200000 cars a year by 2027 and create at least 7500 jobs by 2027. The economic development department of Fort worth submitted the report to the city council on Aug. 10, which also includes a number of incentives, including county tax breaks and grants of up to $440 million.
The $5 billion capital investment pledged by Rivian includes at least $2 billion in real estate improvements and $1.6 billion in hard construction costs, according to the documents. The company promised to complete the initial investment by the end of 2024.
Although many states and cities are still under consideration, Texas has become the Rivian's first choice, according to people familiar with the matter. Rivian, especially CEO R.J. Scaringe, had previously been interested in an Arizona site but expressed concern about available infrastructure, according to people familiar with the matter. No final decision has been made and it could take weeks to reach an agreement with one of the cities or states, according to people familiar with the matter.
Robert Sturns, director of economic development at Fort worth, told city council members in a report on Tuesday that several states were still under consideration. Fort worth believes it offers many competitive advantages, including a strong talent channel and "the ability to support production quickly", according to the document.
It is understood that among the many electric car start-ups trying to catch up with Tesla, Inc. (TSLA.US), Rivian is the most promising. The company plans to launch electric pickups and SUV, and reached an agreement with Amazon.Com Inc to produce 100000 electric vans by 2030. It has raised more than $10.5 billion from investors including F.US and T. Rowe Price. The company already operates a plant in Normal, Illinois, but recently delayed production of its first electric car due to supply chain disruptions.
In addition, the proposed Walsh Ranch is located on 2000 acres in Texas, 12 miles southwest of downtown Fort worth. When completed, the factory will include 12 million square feet of vertical buildings. According to the document, Rivian will ensure a minimum average annual salary of $56000.