Rivian Automotive plans to suspend construction of a $5 billion plant in Georgia as it grapples with disappointing sales of electric vehicles and works to address steep financial losses.
The automaker said Thursday it will make a new model of midsize SUVs at its existing facility in Normal, Illinois. The R2 SUV was slated to be produced at the plant under construction in Social Circle, Georgia, about 40 miles east of Atlanta. The move will save Rivian an estimated $2.25 billion, the company said in a statement.
Automakers are responding to weaker-than-projected sales of electric vehicles by delaying production. In October, General Motors said it would postpone the manufacturing of two EV pickup-truck models in Lake Orion, Michigan, until late 2025.
Other auto manufacturers, however, have continued to aggressively expand into electric vehicle production. Hyundai recently said it expects to begin operations in the fourth quarter at its $7.6 billion EV manufacturing plant under construction near Savannah, Georgia. Toyota recently increased its investment in an EV battery plant under construction near Greensboro, North Carolina, to $13.9 billion.
Rivian said it eventually plans to resume construction at the Georgia factory, though it did not provide an estimated restart date. The plant represents one of the largest economic development projects in the state's history and is projected to employ about 7,500 workers following its completion.
“Rivian’s Georgia plant remains an extremely important part of its strategy to scale production,” the company said in a statement. “The timing for resuming construction is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois.”
Sticker Shock
Motorists have balked at the high sticker price of many electric vehicles. The 2024 model of Rivian’s R1T pickup truck lists for $71,700, compared to $57,090 for a 2024 Ford F-150 electric pickup truck and $38,565 for the gas-powered version of the 2024 Ford F-150.
Rivian said the base model of its R2 SUV will be priced at about $45,000. Rivian estimated that the R2 will be available for sale sometime in 2026.
The state of Georgia provided Rivian with up to $1.5 billion of incentives that include a $702 million property-tax break to build its plant in Georgia. Rivian had initially estimated the Georgia facility would produce about 400,000 vehicles per year, including electric trucks, SUVs and delivery vans.
Rivian’s work at the Georgia construction site has been limited to land grading and site preparation, and no major building work has begun. The automaker recently issued renderings of the site and identified Skidmore, Owings & Merrill as the architect and Clayco as general contractor.