The prospect of American electric car newcomer Rivian building its European factory in the UK could be a step closer following an offer of help from the Government.

According to report in the Financial Times, Government ministers have met with Rivian officials and offered the brand a package of incentives to help secure a £1bn investment in a new state-of-the-art gigafactory in the UK. The site in question is believed to be the 635-acre Gravity business park near Bridgwater in Somerset, which is currently under construction. 

Sources close to the negotiations suggest that Rivian bosses have narrowed their search to the UK, Serbia and another EU country in search for a European base. The incentives include a number of infrastructure sweeteners including a new motorway junction on the M5 and the reinstatement of an old rail line. The site was previously home to a Royal Ordnance bomb factory and is being transformed into a technology and production hub. It’s understood that Tesla boss Elon Musk viewed the site prior to the brand’s decision to build its new factory in Berlin, Germany. The report also suggests that executives from Amazon, which owns a fifth of Rivian were also involved in the discussions. Rivian has been contracted by the American retail giant to build a fleet of electric vans. 

While discussions with Rivian are at an advanced state, it’s not clear whether the production facility will be for batteries or vehicle assembly. While Tesla has opted to build production lines next to battery production, it’s understood that Rivian may consider different locations based on logistics. 

A final decision and announcement is expected in the coming weeks.