Rivian is making significant progress on its upcoming R2 electric SUV, with plans to expand production and take the brand global, Chief Financial Officer Claire McDonough said in an update on social media late Wednesday.
The company is “working around the clock” to expand its Normal, Illinois, plant ahead of the R2’s launch, McDonough said. Production is scheduled to begin in the first half of 2026, with sourcing for the vehicle now about 95% complete.
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Rivian is positioning the R2, which starts at around $45,000, as a more affordable alternative to its current R1S and R1T models, which start at $77,700 and $71,700, respectively.
“The R2 is just the beginning,” McDonough said, noting that smaller R3 and sporty R3X crossover models will follow. Rivian plans to produce the R3 and R3X as it ramps up R2 production at its new plant in Georgia, which is expected to come online in 2028. “There’s a lot more magic in the pipeline beyond these models,” she added.
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Despite its lower price, Rivian aims to maintain the premium feel of its vehicles. “The R2 wonāt be half the vehicle,” McDonough said, emphasizing that it will retain the “Rivian essence” with advanced technology, software, and design.
Rivian secured a loan agreement with the U.S. Department of Energy in January for up to $6.6 billion to help fund the Georgia facility. However, Georgia Governor Brian Kemp said last month he was uncertain about the status of the funding under the Trump administration. Rivian remains confident the funds will be available when needed next year.
Once operational, the Georgia plant is expected to produce up to 400,000 electric vehicles annually. In 2024, Rivian built just under 50,000 vehicles at its Illinois facility. The company also has international ambitions, with plans to launch the R2 in Europe and other global markets as production scales up.