California based Rivian has been given the green light to start construction of its US$5bn EV factory in Georgia.

Progress on this second factory had been stymied after several legal challenges, including a lawsuit which disputed part of an incentive package Rivian was set to receive in its deal with the state.

The automaker was expected to get a US$1.5bn incentive, the second largest in Georgia state history.

Approximately $700m of that included property tax breaks, subsequently disputed by an opposition group.

Last year a Morgan county judge sided with the opposition and rejected the proposed tax breaks.

In addition, five residents sued the Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton Counties.

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By GlobalData

However, the state supreme court declined to hear the appeal challenging the validity of the $700 million tax breaks, signalling a go-ahead for Rivian.

The site, currently being graded, will make new models. The automaker said the EV plant would have capacity for 400,000 vehicles per year and employ 7,500 people by 2028

Production is expected to begin in 2026.

Rivian CEO RJ Scaringe said the automaker was “committed to this state and this project”.

Its first plant was the former Mitsubishi factory in Normal, Illinois.