Automaking is a technology race, and Georgia is ahead, Rivian CEO says
A car can no longer just be a well-made driving machine. Consumers now expect an affordable computer on wheels that leaves competition in its dust.
That’s the message Rivian CEO RJ Scaringe preached to Atlanta’s top business and civic leaders Monday, emphasizing how technology is at the core of his electric vehicle startup. While other automakers hedge their bets amid headwinds facing the EV sector, Scaringe said a long-term view will ultimately prevail — and will benefit the places like Georgia where that innovation takes place.
“Every manufacturer needs to be developing world-class leading technology in what is undeniably the future state of this industry,” Scaringe told the Rotary Club of Atlanta as a featured speaker.
“Throttling back (EV and technology investments) right now will make it extremely hard for those companies to participate in the 2030s,” he continued. “If you look at the competition coming, particularly from China, those companies are not throttling back.”
China has quickly risen to become a dominant EV manufacturer, placing new pressure on legacy automakers trying to remain competitive. Federal policy changes during President Donald Trump’s second term have also shaken up the American EV sector, ranging from trade impacts to environmental regulation rollbacks.
California-based Rivian selected metro Atlanta as its home base to scale its global ambitions, from talent recruitment to technology refinement to vehicle production.
The company’s East Coast Headquarters off the Beltline in Atlanta recently opened and will employ 500 workers by the end of next year, according to Rivian. The automaker’s promised $5 billion factory an hour east of the city in southern Morgan and Walton counties is on track to begin vertical construction next year, assembling EVs starting in 2028, a few years behind its original schedule.
Rivian is still early in its journey from startup to profitable automaker. The company has billions of dollars in reserves in addition to high-profile technology partnerships. But the company only produces about 50,000 vehicles each year and has yet to turn a profit.
Scaringe said the Georgia investments are the key to growing through those challenges and building vehicles at scale in popular product categories such as smaller crossovers that will help it reach sustained profitability.
“Georgia is the most critical part of (Rivian’s) long-term trajectory to become a very strong cash-producing business,” Scaringe said.
While speaking to the Atlanta Rotary Club, Scaringe detailed why scale and cutting-edge technology are vital to his company’s success.
New vehicles, whether fully electric or gas-powered, are expected to feature robust technology systems that incorporate everything from self-driving features to safety sensors. Technology is advancing faster every year, which is why Scaringe views backpedaling as a mistake.
“It’s inconceivable that in 10 to 15 years any car company can operate at scale and maintain the market share that they’ve historically had if they’re not building software-defined vehicles,” he said.
By that he means vehicles in which powerful centralized computing controls key functions, rather than a separate computer for every device or feature in the car.
Rivian’s technology has caught the attention of one of the world’s largest automakers Volkswagen, and the bud of that relationship sprouted in Atlanta.
During a meeting at Porsche’s North American headquarters near Hartsfield-Jackson Atlanta International Airport to discuss technology partnerships, the automakers formulated a historic deal.
“Volkswagen owns Porsche and said, ‘Hey wait a second. If we’re going to deploy this in Porsche, why are we not deploying this across everything?’” Scaringe said. “It led to this ‘aha’ moment.”
In June 2024, Rivian and VW announced a joint software partnership worth an estimated $5.8 billion. Rivian agreed to contribute technology to the German auto giant’s fleet of new EVs, while VW’s financial contributions would support Rivian as it ramped up production.
“It was the largest software licensing deal in the history of the auto industry,” Scaringe said. “So it was a really unique deal, but it was forged not far from here, which is pretty wild.”
For Rivian, that financial contribution will help fund the launch for its new SUV called R2, which Scaringe said aims to grab mass market appeal. Starting at $45,000, it’s significantly cheaper than Rivian’s flagship pickup truck and SUV models.
The Georgia factory is expected to solely produce R2 and its variants, eventually producing 400,000 vehicles annually. The factory’s proximity to Georgia’s ports also opens up the potential to export vehicles to Europe, where they’ll compete with Chinese EVs.
Scaringe said automakers, regardless of whatever short-term headwinds face EVs or alternative powertrains, have to keep investing in new technologies. He said companies have three options: Develop cutting-edge software yourself, license it from someone like Rivian or “accept that they will shrink” by doing nothing.
Rivian won’t do nothing. And it’s investments, even with growing pains, will benefit its new home of metro Atlanta, Scaringe said.
Cox Enterprises, which owns the The Atlanta Journal-Constitution, also owns about a 3% stake in Rivian.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
