EV Start-Up Rivian Gets $50 Million In State Tax Credits From Illinois

8 months ago by Steven Loveday 8

Rivian Automotive

Rivian Automotive (Image Credit: Rivian)

A few months back, we reported about the mystery electric vehicle start-up, Rivian Automotive, that purchased the former Mitsubishi factory in Normal, IL. The group had been working covertly for a number of years in Florida, and then California and Michigan. The deal went through and now the automaker will enjoy a substantial tax credit from the state of Illinois.

Rivian Automotive

Rivian Automotive (Image Credit: Rivian)

Yes … it’s a done deal and Rivian Automotive is ready to move forward.

According to the company, we could see a product as soon as 2020. While this may be a bit of a surprise, since there was no word about the start-up just a few months back, it may not be too far-fetched. The automaker has already been working out all of its preliminary processes for quite some time, and now the company owns a massive, equipped and functional auto plant.

The biggest hurdle for a start-up like Rivian, is funding. This week, the governor of Illinois, Bruce Rauner, presented Rivian with $49.5 million in state funded “Edge” tax credits. Edge is an acronym for “Economic Development for a Growing Economy.” As long as the new automaker sticks to the program’s guidelines, the money is locked in. Essentially, Rivian has ten years to create 1,000 jobs, which seems like a small task.

Rauner sees an immense amount of promise in the company, and feels it will be an excellent addition to the Normal area, and the state as a whole. He is known for personally funding business ventures in the past, through an equity firm that he created. The group found much success, and secured assets adding up to over $11 billion. It is said that Rauner himself has a net worth of over $1 billion. He shared (via Teslarati):

“I’ve spent 45 minutes talking with RJ, talking strategy and product development and it’s incredible what he’s doing … We are hoping to move many of their people here in Illinois, we are working with them on that. ”

RJ Scaringe is Rivian’s founder. He acquired a doctoral degree from the esteemed MIT, in its Sloan Automotive Laboratory program. Following in the footsteps of Tesla, and its NUMMI factory purchase, RJ and company bought the Mitsubishi plant back in January for $2 million, plus the cost of all of the included equipment. This will allow Rivian to get started at a much quicker pace, and to not have to deal with attempting to build a factory and purchase new equipment. RJ explained:

“It’s essentially a new plant; it was commissioned in 1990. Mitsubishi did a great job keeping up with all of the equipment and invested massively in the early 2000’s, so the robotics are all in great shape. The paint shop is in great shape, the stamping operation is incredible. So it really is a unique facility, with millions of dollars of equipment sitting inside of it. We are really lucky we have found it!”

Aside from the Illinois tax break, there is no official word on Rivian’s funding, or board of directors. However, Antony Sheriff’s LinkedIn, formerly the managing director at McLaren, shows that he is on the board of directors. Sheriff also serves in a similar capacity at Rimac Automotive.

We will continue to update on Rivian’s progress, as new information becomes available.

Source: Teslarati

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8 responses to "EV Start-Up Rivian Gets $50 Million In State Tax Credits From Illinois"

  1. Mister G says:

    GO RIVIAN GO

  2. William says:

    Revving up for The Rivian 2020 launch. Hope this start up can get some decent batteries, just up the way, at the LG Chem battery factory in Holland, Michigan. This should be a good fit!

    1. windbourne says:

      Nope.
      They are supposed to be using panasonic in the same fashion as tesla.
      LG’s leaves a LOT to be desired.
      In additon, so does the large cells.

  3. Pushmi-Pullyu says:

    It’s great to see positive news on this new EV startup!

    This is how you run a startup which might actually succeed someday. The very antithesis of all-hat-and-no-cattle Faraday Future!

    I’m hoping to see more articles about this company, and soon.

    Go Rivian!

    1. windbourne says:

      I think that you are underselling faraday.
      Basically, they are stealing technology from American companies, mostly Tesla, Google,and Apple, and THOUGHT that they were going to build a factory here.
      The chinese are well known for NOT doing this.
      As it is, BYD promised a full blown manufacturing plant, and what they built was a small assembly plant. IOW, parts are shipped in like an Ikea package.

      I seriously doubt that Yueting had ANY intention of building a factory in America.
      But for a fraction of the money, he now has some good tech.

  4. Alonso Perez says:

    Interesting that Tesla did not snap up this plant. It really is quite nice, about 60% the capacity of Fremont, which is huge, and with a lot more land around it.

    1. Mister G says:

      Tesla can always buy Rivian

    2. windbourne says:

      And you just listed why Musk would not have bought it, esp. since it was not available back then.