Rivian puts construction of $5 billion Georgia factory on hold

Rivian had one of the biggest days in their short history on Thursday, officially unveiling the R2, and surprising everyone with the debut of the R3 and R3X. However that wasn’t the only big news Rivian revealed today, announcing in a regulatory filing it has decided to pause the construction of its new manufacturing facility in Georgia.

This shift is intended to cut costs significantly as the electric vehicle (EV) maker prepares to introduce its next-generation platform underpinning the R2, R3, and R3X.

According to the filing, first reported by Bloomberg, Rivian says halting the construction of the multi-billion dollar plant will save the company over $2.25 billion, with those savings being realized from “capital expenditures, product development investment, and supplier sourcing opportunities.” As CEO RJ Scaringe revealed during the unveiling event, but without this added context, Rivian plans to launch production of its upcoming model at its existing factory in Normal, Illinois.

This shift will not only save Rivian money, it will also accelerate the delivery timeline of the R2 to the first half of 2026.

Despite the decision to pause, Rivian reassured in its filing that the project is still an extremely important part of its strategy to scale production of R2 and R3.

Rivian’s Georgia factory was initially celebrated as a significant win for the state, promising to create 7,500 jobs by the end of 2028, backed by $1.5 billion in state and local incentives. However, it has faced challenges by locals, delaying the initial start of construction.

As for when construction will resume, Rivian only said it would be “later,” allowing them “to focus its team on the capital efficient launch of the R2,” which as previously mentioned, still start deliveries in 2026.

Rivian’s decision to halt construction comes just a few weeks after the company announced it was laying off 10% of its salaried workforce, and that it expected to maintain flat production levels this year.

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