Boris Johnson has pledged to use specific legal powers to convince an Amazon-sponsored electric vehicle (EV) manufacturer to establish a European base in the UK.
Sky News has learned that Prime Minister RJ Scaringe, Rivian’s founder and CEO, has written to offer his support for the proposed location of a new manufacturing facility near Bristol.
In the letter, the details of which were passed on to Sky News, Mr Johnson said government officials had been instructed to come up with a “bespoke incentive package” to encourage Rivian to give the UK project the go-ahead.
The Prime Minister added that the government will use a Special Development Order (SDO), a seldom-used legal mandate aimed at facilitating quick planning decisions, to facilitate Rivian’s use of the site called Gravity.
Image:
RJ Scaringe is the founder of the company
He said his willingness to set up an SDO “reflects the importance of your project to the UK,” according to a report in his letter.
Further details of the state incentive package that should be made available to Rivian were unclear on Friday but could include grants or tax breaks, according to an insider.
State aid to the UK auto industry has proven controversial in the past, particularly in relation to Japanese automaker Nissan, but has been a key tool for ministers in recent months to secure significant production commitments from multinational companies like Ford.
A delegation led by Lord Grimstone, the Minister for Investment, is expected to hold further talks with senior Rivian executives before Christmas, insiders said.
Sky news unveiled in September that Mr Johnson urged Jeff Bezos, chairman of Amazon, to close a deal for Rivian to build a new plant in the west of England.
He brought up the subject during a meeting with Mr Bezos in New York shortly after executives from the electric vehicle manufacturer visited the UK.
“I want to capitalize on our world-leading green economy and build on our extensive automotive heritage to partner with Rivian as one of the most exciting disruptors in the industry, alongside some of the world’s most famous auto brands already based here,” Johnson recently told Letter, for someone who had seen him.
Please use the Chrome browser for a more accessible video player
From London to Glasgow in an electric car
“The UK innovation scene is thriving because of the steps my government has taken to invest in electrifying the automotive sector, backed by my personal commitment to the industry.
“My net-zero strategy saw funding commitments of over $ 2.8 billion.
“This institutional support together with our mandate for zero-emission vehicles – similar to that of California – provides the perfect basis from which Rivian can distinguish itself and establish itself in the European market.”
Rivian was listed in New York last month and is rising in value to make the EV maker more valuable than both Ford and General Motors, the two greatest icons of the US auto industry.
The share has since fallen back, but is still well above the market price.
If it pushes a manufacturing project in the UK despite competition from several EU countries, it would provide new evidence against predictions that the country’s auto sector was heading for ultimate decline after Brexit.
Honda’s decision to close its Swindon plant, announced in 2019, was seen as a major blow to the industry as Nissan warned that its future investments would be jeopardized if the UK left the trading bloc.
Please use the Chrome browser for a more accessible video player
Nissan paves the way for UK electric cars
Recent developments, involving both the Japanese automaker and Stellantis, have rekindled hopes for a brighter future for car manufacturing in the UK.
The government’s decision to ban sales of new gasoline and diesel cars by 2030 and hybrid vehicles by 2035 has accelerated the need for a massive shift in manufacturing capacity.
However, significant concerns remain that the provision of EV charging infrastructure will not keep pace with demand.
Sky News revealed this summer that Rivian Gravity had identified a 616 acre campus near Bristol as a possible location for a new manufacturing facility.
The company’s largest customer to date is Amazon, which has ordered 100,000 electric trucks that are scheduled to begin production this year.
In his letter to Mr Scaringe, the Prime Minister added that he was confident to have the support of UK companies such as the BT Group, UK gas owner Centrica and the Royal Mail Group, which are among the largest operators of van fleets in the UK.
You and other companies have pledged to purchase at least 100,000 UK electric vans by the end of the decade.
Downing Street and Rivian were both asked for comments.
