Rivian secures $827M incentive package to expand Illinois factory for R2 production

Rivian, the electric vehicle startup, is set to receive a whopping $827 million in incentives from the state of Illinois to support the production of its next-generation electric vehicle, the R2. This funding will be used to expand Rivian’s existing factory in Normal, Illinois, as well as to build out necessary infrastructure and enhance job training programs for its workforce.

The announcement of this substantial funding comes just two months after Rivian unveiled its mid-size R2 SUV, which is expected to have a starting price of around $45,000 when it hits the market in 2026. Additionally, Rivian has plans to introduce a hatchback model, the R3, which will be powered by the same electric vehicle platform as the R2.

Initially, Rivian had intended to build the R2 at a new $5 billion factory in Georgia. However, the company made the decision to shift production to Illinois, where it currently manufactures the R1T pickup, the R1S SUV, and commercial electric vans. This move allows Rivian to accelerate the timeline for the R2 SUV and save over $2 billion in costs.

While Rivian remains committed to eventually building a factory in Georgia, the company’s financial challenges and production struggles have led to a reevaluation of its plans. If Rivian does establish a factory in Georgia, it stands to receive $1.5 billion in incentives, making it the largest incentives package in the state’s history.

Overall, Rivian’s partnership with the state of Illinois and potential future collaboration with Georgia demonstrate the company’s dedication to expanding its electric vehicle production capabilities and creating job opportunities in the United States.