Rivian Halts Construction On $5B Georgia EV Plant
Electric-vehicle maker Rivian has stopped work on a $5B factory near Atlanta as it looks to conserve cash for its rollout of new vehicle models.
Rivian now plans to start production on its new R2 crossover and R3 models at its existing plant in Normal, Illinois.
Rivian CEO R.J. Scaringe made the announcement Thursday when he unveiled the new models, The Atlanta Journal-Constitution reported. The Illinois plant will expand to build 215,000 units a year, according to a Rivian press release.
The decision to shift production to its existing facility and hold off on building its Georgia plant is expected to save the company more than $2.2B, Scaringe said.
“This is a delay, and we expect to resume construction after our initial R2 production ramp in Normal,” Genevieve Grdina, a Rivian spokesperson, told Bisnow in an email.
The announcement throws a wrench into Georgia Gov. Brian Kemp’s efforts to make the Peach State a linchpin in the electric vehicle industry. Rivian announced its decision to build the plant in 2021, then secured a $1.5B incentive package from Georgia, the largest package in the state’s history.
Rivian selected a 2,000-acre site known as Stanton Springs, off Interstate 20 and straddled by Morgan and Walton counties, to build the factory, which the company has said would produce 400,000 vehicles a year.
In exchange for the incentives, which included $700M in property tax abatements and nearly $200M from Georgia’s Job Tax Credit program, Rivian agreed to hire 7,500 people earning at least $56K a year.
But the clock is ticking. Rivian is required to complete 80% of its investment in the factory by 2028 and maintain those commitments from the end of 2030 to 2049 or risk the state clawing back incentives. Spokespeople for the company and state said they still expect Rivian to hit that goal.
The EV maker has already made $3M of payments in lieu of taxes and has taken control of the site, according to a source familiar with the incentive package. Under its agreement, Rivian has pledged to make at least $300M in PILOT payments over a 25-year abatement period.
A spokesperson for Kemp deferred comment to the Georgia Department of Economic Development.
“Rivian has restated its commitment to Georgia, and the State and JDA are in steady communication with Rivian regarding its manufacturing plans at Stanton Springs North,” the Joint Development Authority of Jasper, Morgan, Newton & Walton Counties and the Department of Economic Development said in a joint statement.
