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Rivian rumored to be looking at a 2nd US factory

Discussion in 'Rivian' started by Domenick, Aug 4, 2021.

  1. Domenick

    Domenick Administrator
    Staff Member

    Aug 10, 2017
    2,161
    There have been rumors floating around about Rivian looking for a 2nd manufacturing location.

    We first heard about it on July 22nd. That report had a few details, like they would also (eventually) manufacture 50 GWh of battery cells there, but suggested that a location had not yet been chosen.

    Then, almost a week later, a new report claimed the company would invest $5 billion in this new location, which is supposedly being called Project Tera. It is rumored that the Arizona Innovation and Technology Corridor in Pinal County -- between Phoenix and Tuscan -- would be the location. It is also suggested it could be east of Mesa, which if it were south east, would put it in that area. Phoenix is more directly east of Mesa (Google map link).
     
  2. Fred Golden

    Fred Golden Rookie

    Jul 2, 2021
    15
    Here is a link to the Car and Driver article, they are reporting the location will be east of Mesa AZ, that is adjacent and southeast of Phoenix. There are several square miles of vacant land east of the Phoenix Mesa Airport.

    The SK America battery plant being built in Commerce Georgia will have a 2,200,000 square foot building, and produce about 10,000 MW of batteries each year by the year 2024. So if Rivian is planning 5 times that many batteries a year, it might take 3-5 times as much space.

    My thought is that the City of Mesa might have a problem with that many chemicals being brought into one building each day. The chemicals that go into Li-Ion batteries are reactive with water, so a leaking battery that gets wet will catch fire! The first time a battery factory catches fire, and the water fire sprinklers come on, we will see how reactive the battery materials are to water. And then the local fire department will not approve those large battery manufacturing buildings in their area!

    SK America Plant.

    https://claycorp.com/project/sk-battery-america-inc/

    Car and Driver link

    https://www.caranddriver.com/news/a37159110/rivian-plans-investment-plant/
     
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  3. Fred Golden

    Fred Golden Rookie

    Jul 2, 2021
    15
    Domenick likes this.
  4. Fred Golden

    Fred Golden Rookie

    Jul 2, 2021
    15
    Here is more information about the Rivian proposed factory in Texas. Many times a company might look at 2-5 factory sites, before making a final decision. For Rivian, things like available skilled employees is important, but they can also relocate highly skilled employees to another state, so cost of living might also become important, where moving to a state such as California with a 4 BR house selling at $1,200,000 might drive up labor costs, moving to Texas or Mesa Arizona might offer much more affordable housing, thus less labor costs?

    Rivian is placing "Green Energy" and "Net Zero" carbon energy as very important things to consider. So wind energy in Texas might have something to do with them selecting Texas as a good place to locate. Also ridiculous energy costs to help keep the Arizona factory at a moderate temperature in the summer might be a factor there. Several factories work 5 am to noon to avoid the 105+ temperatures found there 60+ days every summer. Rivian could purchase enough wind energy in Texas to power all it's operations. Yet higher humidity in Texas might make the factory "Feel" warmer than a factory in Arizona, where swamp coolers can control the temperature most of the year.

    Then there are incentives to move a factory to their home sate and town. Many cities find that the increased revenue from higher property tax on all their homes, more business sales tax, and higher income tax for it's residents more than pay for the incentives they might give a company like Rivian for agreeing to hire a local work force of 2,500+ employees by a certain date. So they might offer stages of incentives, as long as goals are met, such as 2,500+ employees in the next 5 years you get this much. 3,500 in the next 8 years and you get this much more. And reduced tax basis for their new buildings as long as certain number of employees are working there.

    https://www.greencarreports.com/news/1133196_rivian-is-targeting-texas-for-second-electric-truck-factory
     
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