Rivian Automotive announced it produced 7,363 electric vehicles (EVs) in Q3. The Illinois-based EV automaker believes it is on track to produce 25,000 EVs in 2022.

Rivian has ramped up production through the first three quarters of 2022 and will need to grow the numbers to around 10,000 EVs in Q4 to meet its annual target. Deliveries of the R1T pickup truck and R1S SUV totalled 6,584 in Q3.

These strong production numbers come after a court in Georgia ruled against part of the incentives announced in May to help fund Rivian’s new US$5Bn manufacturing facility being built just outside Atlanta. Property tax incentives formed part of a total package worth up to US$1.5Bn, but a measure limiting local and school taxes to US$300m over 25 years was met with opposition that has now been upheld by a Superior Courts Judge.

The US Inflation Reduction Act, and similar measures taken in other countries, are attempts to create sustained domestic investment in key clean energy industries. Rivian’s attempts to scale its operations at pace rely heavily on the incentives put in place, which in turn provide a stable investment landscape for continued growth and capital investment. Without meaningful domestic incentives the risk is that future investment and development simply flows offshore.