Kentucky Gov. Andy Beshear on April 27 announced leaders at EV-maker Rivian will invest $10 million to establish a remanufacturing facility in Bullitt County, creating 218 full-time, quality jobs.
Rivian currently stocks replacement parts at an existing 326,000-square-foot facility in Shepherdsville. This project will see the company improve and update the existing operation to establish a robust remanufacturing facility to support the warranty, repair and service footprint of the company’s EV trucks.
The investment will help expand the capability and capacity of this existing site to remanufacture critical components such as electrical hardware, drive units and battery systems.
“Kentucky’s manufacturing and EV industries have seen unprecedented growth recently,” said Beshear. “Continued investment in our key industries is critical for our immediate and long-term economic success. Rivian is an outstanding company that has been a major player in our state’s manufacturing and EV sectors, and this expansion is an exciting next step for the company here in the commonwealth. I look forward to their continued success here.”
“We’re thrilled to be working with the State of Kentucky to help develop and expand Rivian’s first facility within the state," said Jimmy Knauf, Rivian’s executive vice president of facilities. “Our new site in Shepherdsville will support multiple business-critical functions for Rivian and help bring good-paying jobs and training for Kentuckians in the region.”
Founded in 2009, Rivian designs, develops, manufactures and supports electric trucks, SUVs and commercial vehicles, including the Rivian R1T pickup, named 2022 MotorTrend Truck of the Year. The company employs more than 14,000 people and operates its principal manufacturing facility in Normal, IL.
Rivian’s investment continues to solidify Kentucky’s position as a leader within the burgeoning EV sector, with significant investment throughout the past three years. Since June 2020, the commonwealth has seen more than $10.6 billion in EV-related investments, with approximately 10,000 full-time jobs announced.
Rivian’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on April 27 preliminarily approved a 10-year incentive agreement with Rivian under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company’s investment of $10 million and annual job and wage targets.
Additionally, KEDFA approved Rivian for tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Rivian can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
Source: Kentucky Cabinet for Economic Development
Abby Andrews