Rivian is in discussions with the state of Illinois about a new incentive arrangement, following the unveiling of its upcoming R2 SUV earlier this week, now set to be built within the state.
During the automaker’s unveiling of the highly anticipated R2 on Thursday, Rivian announced plans to produce the forthcoming SUV at its factory in Normal, Illinois, instead of at a future plant in Georgia. The company is also pausing construction on the new factory outside of Atlanta to focus on achieving profitability with the upcoming R2, R3, and R3X EVs.
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In a statement on Tuesday, the Illinois Department of Commerce and Economic Opportunity (DCEO) referenced plans for a new incentives package, stating, “The elements of an economic development package are still being finalized. Once they are finalized, we will update the public on the details of the incentive package.”
Rivian expects deliveries of the R2 to begin in 2026, and producing the R2 at its currently operational Normal facility will help it get the $45,000 SUV to market sooner, while plans for the Georgia plant are delayed indefinitely.
“Once again, Rivian has reaffirmed the message that Illinois is one of the best places to do business in the country,” DCEO added. “We stand by Rivian and stand ready to support them as they increase capacity at their Bloomington-Normal facility to roll out the R2.”
See also: Rivian Offers Priority R2 Deliveries to R1S Owners, Speculation Rises for R1T Owners
Rivian has already created more than 8,000 jobs in Illinois, and with the future of the Georgia plant unclear, the state has an opportunity to gain additional employment opportunities as the EV industry grows. However, it is not clear if Rivian plans to expand its Normal factory or re-tool production lines for the R2 line, nor if this will lead to more jobs.
CEO RJ Scaringe expects launching the R2 at its Normal production facility could save the company almost $2.3 billion, after posting an operating loss of $5.7 billion in 2023.
“Just as we were faced with incredibly daunting challenges during the launch of our flagship R1 product line – ramping production in the throes of a global pandemic amid an unprecedented supply chain crisis – we are applying those same lessons today,” Scaringe wrote in a recent statement. “Historically high interest rates and geopolitical uncertainty are affecting everyone, and we must adjust and stay ahead of those situations.”
See also: Rivian Moves R2 Electric SUV Production to Illinois, Postpones Georgia Plant Construction
In addition to unveiling the R2, Rivian surprised with designs for new compact crossover EVs, the R3 and R3X, offering single-motor, dual-motor, and tri-motor trims with DC fast-charging capabilities, featuring both an NACS and CCS charging option. The company did not share pricing or production timelines for the crossovers.
