WASHINGTON/DETROIT — Electrical automobile producer Rivian plans to take a position $5 billion initially in its second U.S. assembly plant, in response to an organization doc shared with state financial growth officers.

The plant, dubbed “Challenge Tera,” requires an estimated 10,000 acres of land in response to a revised financial growth doc seen by Reuters, however financial growth officers mentioned discovering a bit of land that enormous can be extremely unlikely. The preliminary proposal seen by Reuters didn’t establish Rivian by title and mentioned the ability required solely 2,000 acres. As compared, BMW’s South Carolina meeting plant sits on about 1,200 acres.

The goal date to start out manufacturing on the Rivian plant is the second quarter of 2023 with building starting within the fall of 2021, in response to the revised proposal. Nevertheless, a number of folks aware of the matter mentioned the COVID-19 pandemic will possible delay that timeline by as much as six months.

Rivian declined to remark.

Automakers are racing to develop EVs as China, Europe and different international locations and areas mandate decrease carbon emissions. Within the U.S., conventional carmakers corresponding to Normal Motors and Ford Motor Co. are retrofitting vegetation for EV manufacturing, whereas Tesla Inc., Taiwanese contract producer Foxconn and a number of other startups have present vegetation or are constructing them.

The situation of the brand new Rivian plant has not been recognized, however among the many websites into consideration is land east of Mesa, Ariz., close to Gold Canyon, two folks aware of the matter mentioned.

Rivian CEO RJ Scaringe has spoken with Arizona Gov. Doug Ducey concerning the undertaking, one of many sources mentioned.

Officers in Ducey’s workplace and the Arizona Commerce Authority couldn’t reached for remark. The Larger Phoenix Financial Council declined to remark.

Arizona has confirmed fashionable within the auto business resulting from decrease taxes and value of dwelling, in addition to the dearth of hurricanes, floods and different disastrous climate that has impacted vegetation in different areas. Rivian already has a small engineering and check facility in Wittmann, about 35 miles northeast of Phoenix.

In Arizona’s Pinal County, in a area dubbed the Arizona Innovation and Know-how Hall, EV startups Lucid Group Inc. and Nikola Corp. have opened or are constructing meeting vegetation, whereas Nissan Motor Co. and Volkswagen Group have automobile proving grounds.

Pinal County officers mentioned they look ahead to attracting extra green-energy initiatives sooner or later, however declined to touch upon the potential of the Rivian plant.

Final week, Reuters, citing unnamed sources, reported that Rivian deliberate to construct a second U.S. plant that included battery cell manufacturing, and that it could possibly be introduced in September and break floor subsequent yr. Rivian confirmed on the time it was exploring places to observe its manufacturing unit in Regular, Unwell., however declined to offer additional particulars.

The second plant will broaden the corporate’s capability and embrace a 50 gigawatt-hour (GWh) battery cell manufacturing operation inbuilt phases, in addition to a product and expertise middle, in response to the revised 12-page request for proposal despatched to states.

“The corporate has acknowledged that future manufacturing and product plans won’t be totally met by the present capability at Rivian’s Regular, Illinois facility,” Rivian mentioned within the doc.

Along with an preliminary funding of about $5 billion, the plant would “help roughly 10,000+ jobs,” in response to the doc. Corporations usually embrace jobs not directly created by a undertaking of their estimates, financial growth officers mentioned.

Different automakers have partnered with battery producers on cell manufacturing. Samsung provides battery cells to Rivian in Illinois.

California-based Rivian, also backed by Ford and T. Rowe Price, goals to compete when it rolls out its R1T pickup and R1S SUV, in addition to a supply van for Amazon. Rivian will search a valuation of nicely over $50 billion in a possible public itemizing later this yr, a supply beforehand informed Reuters. Bloomberg reported the valuation could reach $70 billion.

Rivian has raised $10.5 billion because the begin of 2019 together with $2.5 billion final week.

This yr has not been with out challenges for Rivian, nonetheless, as CEO Scaringe earlier this month informed clients the pandemic had delayed the launch of its vehicles.