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Rivian Pauses $5 Billion Georgia Production Factory Plan

By Hugh Fort in US business news, posted March 8, 2024

Rivian has decided to pause the development of its £5 billion plant in Georgia.

The electric vehicle firm has nearly finished site preparation on approximately 2,000 acres roughly 50 miles east of Atlanta.

Construction was due to start this year, but the firm has now put the plan on hold.

A downturn in electric vehicle sales over the last half-year has compelled numerous car manufacturers to rethink their strategies concerning new facilities and vehicle models.

Rivian said postponing the Georgia factory's construction would help conserve around $2.25 billion, a significant figure for a company that has faced billions in losses over the past few years.

While the company said it will still build the plant, a timeline for resuming construction was not provided.

CEO R.J Scaringe said: "Our Georgia site remains really important to us.

"It’s core to scaling across all these vehicles."

Plant will create 7,500 jobs

The deferral of the new factory's construction represents a significant blow to Georgia and Governor Brian Kemp, a Republican.

Kemp had heralded the project as the state's most substantial economic development venture.

Rivian had projected the plant would generate 7,500 jobs and eventually yield 400,000 vehicles annually.

The project had encountered resistance due to concerns over environmental repercussions, the generous state incentives awarded to Rivian, and its potential impact on the locality's rural ambiance.

Investor confidence in Rivian has waned significantly in recent times, with the company's stock plummeting approximately 90 percent since its IPO in November 2021.

However, Rivian's shares saw a 13 percent increase on Thursday following the announcement of the Georgia plant's postponement.

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