Rivian is acquisition $827 million in incentives from the state of Illinois to support the production of a next-generation electric vehicle known as the R2.
The company announced Thursday that the Illinois Department of Commerce and Economic Opportunity will provide funding to expand its existing plant in Normal, Illinois, build supporting infrastructure and enhance job training programs for Rivian employees. Renovations to the factory are expected to begin “in the coming months.”
The funding announcement comes just two months after Rivian unveiled its R2 midsize SUV, which is expected to start at about $45,000 when it goes on sale in 2026. The company also plans to manufacture and sell the R3 hatchback equipped with the R3. The same EV platform that underpins the R2.
Rivian originally planned to build the R2 at a new $5 billion factory in Georgia. However, the company announced at its R2 event in March that it has decided to instead build R2 in Illinois, where it currently produces the R1T pickup, R1S SUV, and commercial electric van.
The decision to pivot from the Georgia plant will allow the startup to bring forward the schedule for the R2 SUV and save more than $2 billion. Rivian said it remains committed to building a factory in Georgia. However, the company was forced to reconsider its next-generation vehicle plans due to continued losses and struggles to scale up production (it plans to produce about the same number of EVs this year as last year).
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