Rivian delays $5B Georgia EV plant to accelerate R2 launch, resulting in $2.25B in savings
The EV maker will begin building its new R2 electric SUV at its Normal, Illinois facility to accelerate the launch. Meanwhile, Rivian (RIVN) is delaying construction at its new $5 billion EV plant in Georgia, where the R2 was initially expected to be produced. The delay is not expected to be significant.
Rivian to launch R2 at Normal EV plant, saving $2.25B
Rivian introduced its more affordable R2 electric SUV Thursday during a launch event at its new Laguna showroom.
The electric SUV takes the unique Rivian Adventure Vehicle design shown in the R1 series and puts it into a smaller, more affordable package.
Based on a new, more efficient platform, Rivian’s R2 will be available in single, dual, and tri-motor versions. All will have over 300 miles (483 km) of range.
At 4,715 mm long, 1,700 mm tall, and a wheelbase of 2,935, the R2 is smaller than the R1S (5,100 mm x L, 1,873 mm x H, 3,075 x wheelbase). It’s essentially the size of the Tesla Model Y.
Rivian’s R2 will start at $45,000. Rather than beginning production at its new Georgia EV plant, Rivian said it will launch the electric SUV at its Normal, Illinois, facility.
Rivian said the move will save around $2.25 billion, a significant amount of capital the EV maker can use to launch the R2. New upgrades to Rivian’s Normal EV plant will enable up to 215,000 vehicles to be built annually, up 43% from its previous annual capacity of 150,000.
As a result, Rivian plans to move R2 production to the first half of 2026. Rivian said its Georgia EV plant remains an “extremely important part of its strategy to scale production of R2 and R3.” Construction will begin later to focus on the launch of R2 in Normal.
Rivian’s CEO RJ Scaringe ended the R2 launch event with a Steve Jobs-like “one more moment,” unveiling the R2’s sister, the Rivian R3, and its high-performance tri-motor R3X electric crossover variant.
Electrek’s Take
Rivian’s CFO, Claire McDonough, said last month that the company remained confident that its cash and equivalents could fund operations through 2025.
By launching the new electric SUV in Normal, Rivian expects to have sufficient funding through the start of R2 production.
Announced in November, Rivian will introduce new plant upgrades during a planned shutdown this quarter that will meaningfully reduce material costs later this year. Rivian expects to achieve a “modest growth profit ” by the end of the year.
Because of the shutdown and plant revamp, Rivian expects vehicle deliveries to remain flat this year with around 57,000.
Rivian’s R2 and R3 will help it expand into new markets, including Europe, with smaller, more affordable models.
Rivian is not the only EV maker that backtracked on plans to build next-gen models at a new facility. Tesla did the same with its next-gen EVs and Gigafactory Mexico.
Tesla officially announced “Gigafactory Mexico” last March, where it planned to build cheaper, next-generation electric cars. However, an excerpt from CEO Elon Musk’s biography confirmed the next-gen EVs will be made in Texas rather than Mexico as the plant was falling behind its timeline.
Rivian’s move, like Tesla’s, could pay off. The companies can use what they learn from setting up production at established plants to allow for more efficient new facilities in the future.
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Electricity demand is surging in Texas, and solar, wind, and battery storage are meeting it.
According to new data from the US Energy Information Administration (EIA), electricity demand across the Texas grid managed by the Electric Reliability Council of Texas (ERCOT) hit record highs in the first nine months of 2025. ERCOT, which supplies power to about 90% of the state, saw demand jump 5% year-over-year to 372 terawatt hours (TWh) – a 23% increase since 2021. No other major US grid has grown faster over the past year.
Solar and wind keep ERCOT’s grid steady
The biggest growth story in Texas power generation is solar. Utility-scale solar plants produced 45 TWh from January through September, up 50% from 2024 and nearly four times what they generated in 2021 (11 TWh). Wind power also continued to climb, producing 87 TWh through September – a 4% increase from last year and 36% more than in 2021.
Together, wind and solar supplied 36% of ERCOT’s total electricity over those nine months. Solar, in particular, has transformed Texas’s daytime energy mix. From June to September, ERCOT solar farms generated an average of 24 gigawatts (GW) between noon and 1 pm – double the midday output from 2023. That growth has pushed down natural gas use at midday from 50% of the mix in 2023 to 37% this year.
Battery storage is filling in the gaps
Batteries charge during the day when wind and solar generation are the highest, and they produce electricity when generation from wind and solar slows down. ERCOT began reporting battery output separately in October 2024 in its hourly grid data, and it’s clear that batteries are now helping to smooth out evening peaks. This past summer, batteries supplied an average of 4 GW of power around 8 pm, right as solar production dropped off.
Natural gas is flatlining
Natural gas is still Texas’s dominant power source, but it isn’t growing like it used to. Between January and September, gas-fired plants generated 158 TWh of electricity, compared to 161 TWh in 2023. Gas comprised 43% of ERCOT’s generation mix during the first nine months of 2025, down from 47% in the first nine months of 2023 and 2024.
More demand growth ahead
The EIA expects Texas electricity demand to keep rising faster than any other grid in the US. In its latest Short-Term Energy Outlook, the EIA projects ERCOT’s demand will climb another 14% in the first nine months of 2026, reaching 425 TWh. That means Texas will need even more solar, wind, and battery storage to keep up with its breakneck growth.
Read more: This $900 million solar farm in Texas is going 100% to data centers
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GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.
GM is recalling more Chevy Equinox EV models
In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.
This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.
According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.
Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.
On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.
Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.
The recall includes:
- 2026 Cadillac Optiq: 214
- 2026 Chevy Equinox EV: 1,832
- 2025 Cadillac Optiq: 3,468
- 2025 Chevy Equinox EV: 17,400
GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.
You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.
The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.
If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.
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