Rivian postpones $5B EV plant in Georgia to prioritize R2 launch, saving $2.25B

Rivian Shifts Production of R2 Electric SUV to Illinois Facility

Rivian, the electric vehicle manufacturer, has announced plans to begin building its new R2 electric SUV at its Normal, Illinois facility in order to accelerate the vehicle’s launch. This decision comes as Rivian delays construction at its new $5 billion EV plant in Georgia, where the R2 was initially expected to be produced. However, the company assures that the delay is not expected to be significant.

The R2 electric SUV, which was introduced at a launch event at Rivian’s Laguna showroom, will be available in single, dual, and tri-motor versions with over 300 miles of range. Unlike its larger counterpart, the R1S, the R2 will start at a more affordable price point of $45,000.

Rivian’s choice to launch the R2 in Normal is expected to save the company around $2.25 billion, and production capacity at the facility will increase to 215,000 vehicles annually. The company plans to move R2 production to the first half of 2026 and has also revealed plans for the R3 and R3X electric crossover variants.

Despite the shift in production location, Rivian remains confident in its funding through 2025 and expects to achieve modest growth profit by the end of the year. The company anticipates delivering around 57,000 vehicles this year, with the R2 and R3 models helping to expand into new markets, including Europe.

Rivian’s decision to launch the R2 in Normal follows a trend set by Tesla, who recently established Gigafactory Mexico. Both companies stand to benefit from setting up production at established plants, allowing for more efficient new facilities in the future.

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About the Author: Piers Parker

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