Rivian “Pauses” Georgia Factory Construction to Build New R2 in Illinois

Rivian surprised and delighted industry pundits with the surprise reveal of the Rivian R3 and R3X alongside the smaller R2 SUV we were expecting. While we knew an R3 eventually would join Rivian's lineup and had reported on it in the past, its reveal at the R2 event was unexpected, and generated some additional interest in the company and its offerings. But other developments point to Rivian's longstanding and potentially existential cashflow crisis, namely that the company paused construction at its heralded Georgia production plant.

The R2 was to be built in Georgia, but Rivian is burning cash and losing a significant (yet declining) amount of money on each vehicle it sells (as of our latest information). Rivian has decided to "pause" construction at the Georgia plant indefinitely, it said in a statement: "The timing for resuming construction is expected to be later," so it may focus on the R2 launch, the company said.

Rivian expects the move to free up $2.25 billion, which it intends to use to help launch the R2 production line in the existing Rivian plant in Normal, Illinois. The move also accelerates the R2 launch, which is expected in early 2026. Rivian expects to be able to produce 215,000 units a year of all the vehicles it will make at Normal: R1T, R1S, and R2, as well as the two versions of the delivery van it produces—the EDV for Amazon and the Rivian Commercial Van (known also as the Rivian Delivery 500 and 700).

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By moving Rivian R2 production to Normal, the mix of vehicles will be different. Production of other Rivian models may be reduced if the plant is run at capacity to make room for the R2 on the line. Rivian hopes the R2 will be less expensive to produce and potentially more profitable than its expensive R1 line.

The organizations in Georgia that are overseeing the Georgia plant's development indicate that so far, there are no red flags. According to the Jackson Progress-Argus , the State of Georgia and the Joint Development Authority of Jasper, Morgan, Newton, and Walton counties indicated in a statement that Rivian has committed to meeting its goal of 80 percent of its $5 billion investment and producing 7,500 jobs by 2030. Construction of the plant itself hasn't actually started; it was supposed to begin sometime this year, reaching operation to produce the R2 in 2026. The site has been graded, however.