Rivian Automotive has secured an $827 million incentive package from the State of Illinois to support the production of its next-generation electric vehicle, the R2. The funding, announced on Thursday, will be utilized to expand Rivian’s existing factory in Normal, Illinois, upgrade supporting infrastructure, and enhance job training programs for its workforce. The automaker plans to begin updates to the factory “in the coming months.”
This announcement follows Rivian’s recent unveiling of the mid-size R2 SUV, expected to be priced around $45,000 when it becomes available for sale in 2026. Additionally, Rivian intends to manufacture and sell a hatchback named the R3, powered by the same electric vehicle platform as the R2.
Initially, Rivian had intended to produce the R2 at a new $5 billion factory in Georgia. However, during the R2 event in March, the company disclosed its decision to shift production to Illinois, where it currently manufactures the R1T pickup, the R1S SUV, and commercial electric vans. This strategic pivot enables Rivian to accelerate the R2 SUV’s timeline and save more than $2 billion. Despite this change, Rivian remains committed to constructing the Georgia factory.
Rivian’s financial challenges and production scaling difficulties, which resulted in a production volume similar to last year’s, led to the reassessment of its plans for the next-generation vehicle.
In Georgia, Rivian stands to receive $1.5 billion in incentives if the factory is built. This incentive package, the largest in the state’s history, is contingent on several commitments from Rivian, including the hiring of 7,500 employees with an average annual salary of $56,000 by the end of 2028. Rivian has agreed to maintain these jobs through 2047, with the obligation to repay the state and joint development authority (JDA) in any year when it falls 80% below its maintenance commitment.
