RIVIAN GETS $827 MILLION CASH INJECTION FROM ILLINOIS TO PRODUCE NEW R2
- Rivian secures an $827 million incentive package from the State of Illinois Department of Commerce & Economic Opportunity.
- Funds will be used to upgrade the Normal, Illinois facility to build the new R2 midsize SUV.
- R2 is expected to reach production in the first half of 2026.
Electric vehicle maker Rivian has qualified for an incentive package of $827 million to expand its factory in Normal, Illinois. The investment from the State of Illinois Department of Commerce & Economic Opportunity will be used to develop the facility to produce the new R2 midsized SUV.
Updates are expected to occur later this year, with Rivian noting the Normal factory will manufacture the R1S, R1T, and commercial delivery vehicles, aside from the R2. Rivian’s latest model will enter production in the first half of 2026, opening the brand up to a larger part of the car-buying market.
2024 Rivian R1T Truck
Rivian R2 Won't Be Built In Georgia As Planned
The new $827 million incentive will also be used to train the workforce and improve the public infrastructure at the facility. Rivian’s new R2 was initially expected to be built at the new Georgia facility, but the company chose to produce the midsize SUV at its existing plant instead.
Rivian Opens Charging Network to All EVs
The Rivian Adventure Network of electric vehicle chargers will soon be opening to everyone.This decision saved the company more than $2 billion, but it still views the Peach State as "an extremely important part" of its strategy to scale production, indicating that other announcements may follow in the future.
"The support from the state will allow us to quickly bring our midsize SUV, R2, to market and provide even greater consumer choice for EVs. Governor Pritzker has always been a strong advocate for providing economic opportunities for Illinois residents and business owners alike. We look forward to continuing our close partnership and building upon the success we have enjoyed."
- RJ Scaringe, Rivian CEO.
Has Rivian Learned From Past Mistakes?
This period of transformation is hugely important. It took the automaker some time to scale R1T and R1S production, with the company producing just over 57,000 vehicles last year. These are both expensive EVs aimed at the higher end of the market. The R2, with its lower starting price of $45,000, will attract many buyers, and the automaker will have to be able to meet customer demand by sustaining production and making enough vehicles.
Hopefully, Rivian will have implemented lessons learned with the R1 models, ensuring the R2 enters production without a hiccup. Should there be any delays, this will only weaken investor confidence and put the company in a trickier position when the R3 eventually sails down the assembly line, and that's the one most are interested in buying as soon as possible. Perhaps Georgia will be the home of the R3, but that's some way off. Perhaps it will also build the R2, or perhaps Scaringe has other plans. Once we know, we'll bring you more.