Rivian has put its $5 billion electric vehicle factory in Georgia on hold as it will initially build the new mid-range R2 at its existing plant in Normal, Illinois.
The electric car manufacturer first announced its mammoth factory plans for Georgia back in 2021 and has spent the last several months grading the 2,000-acre property. It was expected to begin vertical construction at the site this year. In a press release related to the new R2, as well as the smaller R3 and R3X, both of which were introduced today, Rivian said the Georgia plant “remains an extremely important part of its long-term strategy to scale production of R2 and R3.”
“The timing for resuming construction is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois,” it added.
Read: New Rivian R3 And R3X Promise To Combine Affordability With 300+ Mile Range
Rivian states that initially producing the R2 at its current plant will accelerate its launch, moving production forward to the first half of 2026. This approach will also lead to “significant” reductions in capital requirements, mitigate risks associated with launch and production scaling, and enable the utilization of existing manufacturing and operations teams in Illinois.
The brand estimates that halting construction at the Georgia site will save approximately $2.25 billion compared to the original production plan.
The Georgia Department of Economic Development and Joint Development Authority of Jasper, Morgan, Newton, and Walton Counties, told The Atlanta Journal-Constitution that the automaker remains committed to the site.
“Rivian has restated its commitment to Georgia, and the State and JDA are in steady communication with Rivian regarding its manufacturing plans at Stanton Springs North,” it said.
In March 2023, Rivian founder RJ Scaringe said the future of his company relies on the Georgia factory.
“We’re committed to this state and this project,” he said. “The future of our company in terms of scaling and growing really relies on the future of this project. There’s not another option. We’re not planning an alternative. This must work.”
