Rivian Rescales Plan for New EV Plant

Electric vehicle manufacturer Rivian has altered the production plan for its under-construction assembly plant east of metro Atlanta, now targeting a 2028 start date and an output of 300,000 EVs per year. That represents a 50% higher volume than previously planned for that new plant, which now is expected to “vertical construction” this year.

In parallel, Rivian renegotiated a $6.57-billion U.S. Dept. of Energy Loan from 2024 down to $4.5 billion, and it plans to draw on that loan next year rather than in 2028 as initially agreed.

“We’re very excited to partner with the U.S. Dept. of Energy to grow our manufacturing footprint in Georgia,” stated Rivian founder and CEO RJ Scaringe. “R2 dramatically expands our market opportunity. The thousands of dedicated people who will soon work in our Georgia plant will be instrumental to Rivian’s growth as we scale American manufacturing and work to ensure that the U.S. retains its leadership in innovation and technology.”

R2 is a five-seat SUV model aimed at mid-range vehicle buyers, which Rivian has described as the core of its manufacturing program. R2 is more affordable than the R1S SUV aimed at higher-end buyers.

The R1S shares a common vehicle platform with an electric utility truck model (R1T), and both models are produced at Rivian’s plant in Normal, Ill. (That operation is a formerly idled Mitsubishi Motors plant that Rivian purchased in 2017 and started in 2021.)

Recently, production of the R2 started in Illinois, too.

The greenfield project in plant was announced in late 2021 as an estimated $5-billion development that would produce 400,000 EVs per year. It was to start up this year, producing 200,000 R2s and subsequently a smaller, electric crossover vehicle called R3 built on the same platform as the R2.

But the Georgia plant was put on hold in 2024 after site preparation had begun, and the automaker instead moved to add R2 production capacity in Illinois.

The 2024 DOE loan gave Rivian a route to resume the Georgia project, with construction to resume this year and production to begin in 2028.

The new plan will keep the 2028 target but increase the production rate at the start-up to 300,000 R2 vehicles, lowering the cost-per-vehicle while allowing for future expansion. In the weeks to come Rivian is preparing to develop the new plant’s stamping press, “one of the most capital-intensive and technically demanding projects within the plant from a construction perspective. Progress will accelerate this summer as the facility’s primary buildings begin to take shape.”

The start date will be important for Rivian’s recently announced partnership with Uber to supply the ride-share business with up to 50,000 robotaxis, beginning in late 2028.