Rivian Secures $827 Million Incentive Package to Expand Its Illinois Facility

By Trisha Andrada

May 03, 2024 01:41 AM EDT

Illinois has awarded Rivian $827 million in incentives to help fund the production of the R2, the company's next-generation electric vehicle (EV).

Illinois Gives Rivian $827 Million to Expand Its Manufacturing Facility

In the announcement made Thursday, May 2, Rivian said it will use the cash to expand its current manufacturing in the town of Normal, build up supporting infrastructure, and improve job training programs for its workers. Repairs and upgrades to the plant will start in the coming months.

The State of Illinois Department of Commerce and Economic Opportunity will distribute the funds. The Illinois Reimagining Energy and Vehicles tax credits are the primary sources of financing for this initiative.

Governor JB Pritzker said this decision is a massive win for the state's economy and EV industry. "Not only are we creating the jobs of the future, we are providing Illinoisans the skills they need to fill them," he said, as reported by 25 News Now.

Rivian's Upcoming R2 Mid-Size SUV to Be Manufactured in Illinois

Rivian announced the financing just a few weeks after unveiling the R2 mid-size SUV, expected to hit the market in 2026 with a starting price of around $45,000. In addition to the R2, Rivian intends to produce and market a hatchback named the R3 that rides on the same EV platform.

According to TechCrunch, Rivian was originally going to construct the R2 in a $5 billion state-of-the-art facility in Georgia. However, at the March R2 event, the firm revealed that it will be manufacturing the EV in Illinois, the same facility that produces its R1T pickup, R1S SUV, and commercial electric vans.

Nevertheless, the plant in Georgia will still go forward as planned.