Project News

Why Rivian Georgia EV Plant Was Put on Hold

The automaker planned to start work on the $5 billion plant this year.

Updated on

August 18, 2024

Rivian new EV models — Rivian unveiled two new EV models in March 2024. PHOTO | GETTY IMAGES

Electric vehicle maker Rivian halted construction of its $5 billion production plant in Stanton Springs, Georgia, in March 2024, after a $5.4-billion annual net loss.

Chief executive R. J. Scaringe told investors that the EV-only producer had decided to pause the project to focus on cost efficiency and long-term growth.

Rivian’s upcoming models—the R2 and the R3—were slated to be produced in Georgia with an arrival time of 2026. However, they will now be assembled at the existing plant in Illinois.

According to Scaringe, this will allow Rivian to bring the R2 to market quickly.

“It would also save $2.25 billion in capital spending,” he said in a press release.

However, he emphasized that the Rivian Georgia plant remains an extremely important part of the company’s strategy to scale production of R2 and R3.

He added, “The timing for resuming construction is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois.”

Rivian, headquartered in Irvine, California, with a production site in Illinois, hopes to expand to keep up in an increasingly competitive EV market.

The automaker had planned to begin construction of the 16-million-sq-ft Georgia plant early this year, 65km east of Atlanta, aiming for production to start in 2026.

Although grading and site preparation were completed under a state-led project, it was not clear whether Rivian’s contractor, Clayco, Inc., had mobilized.

Anthony Johnson, president of Clayco’s industrial business unit, said in a press statement that Clayco and Rivian “remain dedicated partners.”

“When the time is right to break ground and advance construction of the plant, our team will be ready to support and execute our plans seamlessly,” he said.

At its Illinois facility, Rivian produces its R1T pickup truck, R1S SUV, and electric delivery vans for commercial use. These vehicles are priced at $70,000 each.

The company hoped to produce R2 vehicles in Georgia, targeting a broader consumer base with lower price tags.

Phase one of Rivian’s Georgia plant was to produce 200,000 vehicles annually, with a subsequent phase producing an additional 200,000 vehicles per year.