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Rivian receives $827M to develop Illinois R2 facility.

To help create its next-generation electric car, the R2, Rivian is receiving $827 million in incentives from the state of Illinois.

The Illinois Department of Commerce and Economic Opportunity will distribute the cash, which the carmaker will use to expand its current facility in Normal, Illinois, build out supporting infrastructure, and increase job training programs for its personnel, the firm said on Thursday. Plant updates will start “in the coming months.”

Only two months before the financing announcement, Rivian debuted the midsize R2 SUV, expected to start at around $45,000 when it goes on sale in 2026. Rivian plans to build and market the R3 hatchback using the same EV platform that supports the R2.

Originally, Rivian intended to manufacture the R2 at a brand-new $5 billion Georgian facility. But the business said at the R2 event in March that it has chosen to construct the R2 in Illinois, where it already produces its commercial electric vans, the R1S SUV, and the R1T truck.

Moving away from the Georgia facility enables the firm to save over $2 billion and accelerate the R2 SUV’s release date. Rivian has committed to constructing the Georgian facility. But the firm had to reconsider its plans for the next-generation car due to its ongoing losses and difficulties expanding production—it will produce about the same amount of EVs this year as it did the previous year.

Image Credits: Rivian

Should Rivian establish a plant in Georgia, it will be eligible for subsidies worth $1.5 billion. Rivian pledges to recruit 7,500 workers by the end of 2028, paying an average of $56,000 a year as part of that incentives package, which is the largest in the state’s history. Under the deal, Rivian has committed to having these positions maintained until 2047. Should Rivian’s maintenance fall by more than 80% in any given year, it must make reparations to the state and joint development authority (JDA).

Juliet P.
Author: Juliet P.

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