Rivian typically had a superb day yesterday, launching the R2 SUV together with the shock R3 crossover and dune buggy-esque R3X that have been met with normal acclaim. Buried in that press launch, nevertheless, was the information that the automaker is halting manufacturing of its $5 billion Georgia plant as a way to get monetary savings.
As an alternative of constructing the R2 in Georgia as initially deliberate, the corporate will begin manufacturing of the electrical SUV at its current Regular, Illinois plant. “Past considerably lowering the quantity of capital wanted to convey R2 to market, the corporate believes this method significantly reduces threat to the launch and related ram,” the corporate mentioned.
The transfer may even permit Rivian to convey the R2 to market sooner, within the first half of 2026, whereas saving the corporate $2.25 billion in capital spending within the brief time period. That is vital because it has been burning by money of late, in keeping with current reviews.
Of all of the EV startups to come back alongside of late, Rivian has been some of the promising because of important investments from Amazon, Ford and others. The corporate’s electrical R1T pickup and R1S SUV have been additionally broadly praised for his or her enticing designs, wholesome vary and extra.
Ramping up an automotive startup isn’t any simple feat, although, particularly in a market that is been powerful on EVs of late — with even stalwart Tesla feeling the pinch. It would not assist that startup rivals like Fisker are having critical money circulate points, as it could spook shoppers cautious of untested EV manufacturers.
Rivian chosen Georgia as the location for its second EV manufacturing unit again in 2021, receiving as much as $1.5 billion in state incentives. On the time, the corporate mentioned it hoped to ultimately produce 400,000 electrical automobiles there yearly. With plant modifications, the Regular, Illinois facility will increase capability to 215,000 models yearly throughout R1T, R1S, EDV, RCV, and R2.
The Georgia location stays within the image, however Rivian solely mentioned it building would restart later. “Rivian’s Georgia plant stays a particularly vital a part of its technique to scale manufacturing of R2 and R3,” it mentioned in a press release.
