Rivian Automotive (NASDAQ:RIVN) has broken ground on a new manufacturing facility in Georgia that will eventually produce the midsize, 5-seater R2 SUV, and R3 crossover.
The first phase of construction will begin next year. Once complete, the facility is expected to produce up to 400,000 vehicles each year by 2028. In addition to 2,000 construction jobs, Rivian (NASDAQ:RIVN) expects to employ 7,500 people at the plant by 2030.
While the company has not received direct funding from Georgia, the Department of Energy has provided Rivian (NASDAQ:RIVN) with a $6.57B “conditional” loan to finance the construction of the Stanton Springs, GA plan as part of the Advanced Technology Vehicles Manufacturing Loan Program. Georgia reportedly paid more than $32M to clear the site for construction.
The construction of the plant comes as the company struggles against sluggish sales and the slow adoption of its electric vehicles, specifically Rivian’s (NASDAQ:RIVN) R1T truck, recently named one of Consumer Reports’ least reliable vehicles.
The multi-billion dollar gamble by Rivian (RIVN) comes as other manufacturers are scaling back EV production amid an end to the government’s $7,500 tax credit. According to data from Cox Automotive, EV sales growth has slowed to +1.5% in the first half of 2025.
“We did not build this company based on federal tax initiatives, and we’re going to prove that we’re going to be successful in the future,” Rivian’s Chief Policy Officer said in an interview with Fortune.
While Rivian (RIVN) is capitalizing on an unfilled niche with its R1T pickup, it only holds 3% of the total EV market share, falling in 8th place behind Tesla (TSLA), Ford (F), Chevrolet (GM), BMW (OTC:BMWKY), Hyundai (HYMTF), Volkswagen (OTCPK:VWAGY) (OTCPK:VLKAF) (OTCPK:VWAPY), Honda (HMC), and Kia.
Nonetheless, investors seem to be encouraged by Rivian’s (RIVN) future growth plans, driving shares up by more than 5% on Tuesday.