Amazon-backed electric vehicle startup could bring 7,500 jobs, $5 billion investment to Fort Worth

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, according to city documents.

The factory – codenamed Project Tera according to the documents – could produce 200,000 vehicles a year and create at least 7,500 jobs by 2027. Rivian would ensure an average annual minimum salary of $ 56,000.

The proposed 2,000 acre Walsh Ranch property is 12 miles southwest of downtown Fort Worth. When completed, the facility would have a construction area of ​​12 million square meters. The entire Walsh Ranch development spans more than 7,000 acres of ranch land and will be built upon with thousands of homes, businesses, schools, and parks over the next several decades.

The Rivian site would be separate from the already developed housing estate, said Greg Miller, a spokesman for the Walsh family who own the land.

In a presentation Tuesday to the Fort Worth City Council, the city’s economic development department suggested granting the company grants and tax breaks totaling $ 440 million. Bloomberg was the first to cover the presentation on Wednesday.

The presentation stated that well-known competitors for the project are “offering aggressive government and local incentives,” which are important in Rivian’s site selection.

If the electric vehicle maker chooses Fort Worth, it would be one of the largest economic development projects in Texas history, according to the city. It would ultimately generate almost twice as many jobs and five times as much investment as moving Toyota North America’s headquarters from California to Plano.

The proposed welcome basket shows the extent to which economic development officials are eager to woo companies in the fast-growing electric vehicle market – even those like Rivian who have not yet produced a single vehicle for sale.

The Irvine, Calif.-Based automaker is one of the most promising of a large group of EV startups trying to catch up with Tesla Inc., which is building a sprawling Austin factory that is nearing completion.

North Texas is one of the first markets that Amazon used electric vehicles. The van, which can travel up to 150 miles on a single charge, was unveiled last October.

The city is also proposing to nominate Rivian’s plans as the Texas Enterprise Zone Project, making it eligible for additional state tax incentives and seeking other incentives from Tarrant County.

Rivian’s $ 5 billion investment commitment includes at least $ 2 billion in real estate improvements and $ 1.6 billion in construction costs, the document shows. The first investments would be made by the end of 2024.

While a number of states and cities are still under consideration, the Texan website has become the front runner for Rivian, Bloomberg reported, citing people familiar with the matter.

Rivian, particularly CEO RJ Scaringe, had previously been interested in a location in Arizona but there were concerns about the infrastructure available, Bloomberg’s sources said.

A final decision has not yet been made and it could take a few weeks to reach a deal with either city or state, Bloomberg reported.

“Rivian is in talks with multiple locations as part of a competitive process to set up a second manufacturing facility,” said Jim Chen, the automaker’s vice president of public policy, in a statement emailed Wednesday. “This can mean that Rivian is involved in certain publicly available processes in potential locations. Participation in these processes does not mean a final decision. “

Fort Worth Director of Economic Development Robert Sturns told city council members in Tuesday’s presentation that Fort Worth’s competitive advantages, according to the 11-page document, include a skilled workforce and “ability to ramp up production quickly.”

“Fort Worth has quietly evolved from a conventional energy city to a city of new, technology-driven energy over the past decade, so we are naturally thrilled to be a finalist on this particular project,” Sturns said in a statement to the Dallas Morning News.

Texas recently lost an offer for electric vehicle maker Canoo’s first manufacturing facility. The company instead chose to locate its U.S. manufacturing in a purpose-built 400-acre assembly plant 45 minutes outside of Tulsa, creating 2,000 jobs.

Rivian has attracted attention with its planned battery-electric pickup and SUV, as well as a deal to build 100,000 electric vans for Amazon by the end of the decade.

The company has raised more than $ 10.7 billion from investors, according to tracking site Crunchbase. His high profile supporters include Amazon, Ford Motor Co., and T. Rowe Price. The company already operates a factory in Normal, Illinois, but recently delayed the start of production of its debut electric vehicle due to supply chain disruptions.

Rivian’s electric pickup truck.(Rivia)

Rivian’s R1T electric trucks are manufactured at the Illinois facility. It is located in a rural university town more than 160 miles south of Chicago in a former Mitsubishi manufacturing facility that has been remodeled, according to the Chicago Tribune. The plant employs 2,200 and is located on 503 hectares.

Rivian has bought 380 acres of adjacent farmland for expansion. That is still on the right track, a Rivian spokesman told the Tribune.

The second plant that Fort Worth vies for is separate from any expansion of the Illinois plant, the Rivian spokesman said.

This story includes reports from Bloomberg’s Ed Ludlow and Dallas Morning News staff Dom DiFurio and Maria Halkias.

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