Rivian has paused plans for a $5 billion factory in Georgia, shifting production of its new R2 EV to Illinois. Volkswagen plans to invest $1 billion in Rivian, with a potential $4 billion more through 2026. The joint venture will develop software-defined vehicle platforms for both companies. Rivian's CEO remains committed to the Georgia factory, citing the partnership's financial support. The announcement boosts Rivian's stock price, signaling confidence in the startup's profitability. Rivian's decision to delay construction in Georgia saves $2.2 billion. The state offered a $1.5 billion incentive package, contingent on job creation and investment. Rivian reported a $1.4 billion net loss in Q1. The joint venture will be a separate entity led by Rivian and VW CEOs, focusing on technology development. This partnership aims to drive cost savings and accelerate technology integration for both companies.