Electric vehicle startup Rivian announced plans to pause the construction of its upcoming $5 billion electric truck factory in Georgia during the R2 debut yesterday, March 7.
Original plan
Rivian originally planned to produce its all-new R2 midsize electric SUV at the new Georgia site east of Atlanta. Both state and local governments offered the company an incentive package reaching up to $1.5 billion, one of the biggest financial aid offered for an American automotive factory.
However, the company suddenly had a change of heart about the Rivian R2’s production location during its official debut.
Updated strategy
Rivian Chief Executive RJ Scaringe declared on Thursday that the American electric truck maker has decided to change course from the original plan, saying that the R2 will undergo production at the existing Illinois factory.
CEO Scaringe explained that the changes will enable the company to launch the R2 faster, sometime in 2026. It will also apparently aid Rivian to save $2.25 billion in capital spending for now. Rivian has been consuming its cash reserves rapidly, despite failing to meet production targets at its Illinois facility.
Nonetheless, CEO Scaringe emphasized that the Georgia factory is still a crucial project for the company, as it is the “core to the scaling across all these vehicles, between R2, R3 and R3X. And we’re so appreciative of all the partnerships we’ve had there.”
The Georgia factory
Rivian’s planned production plant in Georgia will rise near the I-20 corridor to Atlanta’s east, marking the company’s second local factory after the one in Illinois.
Rivian expects the new factory to create 7,500 job opportunities for the locals, with a $5 billion investment for the project development. It is expected to hit an annual production capacity of about 400,000 units by 2030.
Rivian has yet to announce exact plans for the Georgia factory’s development resumption, except for CEO Scaringe’s remarks that “the timing for resuming construction is expected to be later.”
