EV manufacturer Rivian is trying to obtain all the necessary authorizations to build a second production site in the U.S. state of Georgia.
In the raging EV war, all the automakers are seeking an edge against rivals. And in a race arbitrated by the financial markets and consumers, any break they catch is important, especially when it is likely to change the industry narrative.
Rivian Automotive (RIVN) – Get Rivian Automotive, Inc. Class A Report, which is working to persuade investors and consumers that it’s able to manage production-rate increases, knows this only too well.
The Irvine, Calif., automaker faces a big test on March 10, when it reports its financial results. It goes without saying that analysts will focus on its production after Rivian indicated in December that it was experiencing bottleneck problems and struggling with the shortage of chips.
But some two weeks before this big test, the pressure seems to be easing a bit. A key obstacle that stood in front of its development ambitions has just been removed.
Rivian only has one factory at the moment, in Normal, Ill. The authorities of the U.S. state of Georgia, where Rivian wants to establish its second production site, have just given it a gift.
Rivian
No More Hearing
Georgia is taking over the controversial Rivian Automotive development project in Stanton Springs, half an hour east of Atlanta, the Georgia Department of Economic Development said this week.
“By taking these steps together, our goal is to streamline the entire project process, giving community members a strong voice throughout,” Commissioner Pat Wilson said, quoted by the Morgancountycitizen.com.
“We will continuously work with our city and county governments to ensure that every concern is heard and every question answered.”
The move will erase the need for local governments to conduct public hearings on zoning and other controversial measures. The state’s ownership of the land will exempt the Rivian Automotive project from going before Morgan County’s Planning Commission and Morgan County Board of Commissioners for rezoning approval.
Rivian’s project has met strong local opposition. An anti-Rivian movement, which already has more than 2,000 people, according to the local press, has organized protests in the region to denounce the transformation of the 2,000-acre site into a gigantic vehicle manufacturing plant.
The opponents, who have demonstrated on various occasions with placards saying ‘We oppose Rivian Assembly’s plant,” planned to be at a Feb. 24 hearing during which Rivian was to answer the questions and concerns of the community. That hearing has been canceled.
Opponents notably want local authorities to sharply restrict Rivian regarding its rezoning requests that affect dozens of plots of land.
Feeling that things could get out of their control, the local authorities, who very much favor the Rivian project, a few days ago wrote a letter asking the state to appropriate the site.
“It has become apparent that complying with the numerous state, federal and local laws, rules and polices around the site requires a higher resource level than we can bring to bear locally,” a Feb. 18 letter addressed to Wilson said. The letter was signed by the four members of the Joint Development Authority of Jasper, Morgan, Newton and Walton, the four counties where the Rivian car manufacturing site will be located.
“We understand that for the State of Georgia to carry out this process, it will take titte to the real estate.”
Rivian
Focus on Building the Plant
The answer was not long in coming.
“We appreciate the perspective in your recent letter (…) that the State of Georgia consider taking the lead on next steps with the Rivian Automotive project,” Wilson wrote back on Feb. 21.
“We believe that this approach will enable the State to provide additional resources to improve the process of public input and feedback by consolidating it into a single forum rather than three individual jurisdictions that have separate rules, regulations and ordinances’,
His letter was posted by the local news website Walton Tribune.
This is a huge relief for Rivian because the decision of the local authorities will save it a long process that could have been costly both financially and in terms of resources involved. The automaker can now focus its efforts on its operations.
Rivian is keeping its schedule largely intact and somewhat avoiding the situation rival Tesla (TSLA) – Get Tesla Inc Report in Germany finds itself in.
Elon Musk’s company has still not obtained its permit to start producing vehicles at its Berlin site, a centerpiece of its ambitions in Europe, mainly due to environmental concerns.
The Rivian site project foresees an investment of $5 billion and is supposed to generate some 7,500 jobs, according JDA. Construction is scheduled to begin this summer, with the first vehicles expected to roll off the line in 2024.
The new assembly plant and battery factory will be focused on Rivian’s next generation of electric vehicles. Once manufacturing operations are fully ramped up, the facility will be able to produce as many as 400,000 vehicles a year.
“For us to be successful in Georgia, it’s important that we spend time listening to local concerns, addressing them as best we can, and working hard to be the kind of neighbor the community would like to see,” a Rivian spokesperson said in an email statement.
“This spring we’ll be hosting events, alongside local and state representatives, that will introduce the community to our products, our employee team, and to area employment opportunities.”
Rivian currently produces two models – the R1T pickup truck and the R1S SUV. The automaker, which has an impressive array of shareholders (Amazon (AMZN) – Get Amazon.com, Inc. Report and Ford (F) – Get Ford Motor Company Report among many others), has just replaced one of its top managers in production activities in hopes of resolving its production difficulties.
