Illinois taxpayers have ‘donated’ nearly a billion dollars so that Rivian can built the R2 in Normal
- The State of Illinois awarded Rivian a significant incentive package to support the expansion of their factory in Normal, Illinois.
- The money will be used to prepare the factory for production of the R2, Rivian’s upcoming mid-size electric SUV.
- While the R2 was originally planned for production in Georgia, this deal shifts focus to the Illinois facility.
Rivian has received an $827 million (equal to £660M / €771M at today’s exchange rates) incentive package from Illinois’ Department of Commerce & Economic Opportunity. The funds will be used to support its plant in Normal, where the R1S and R1T are built.
The electric startup said the money will be used to help expand the plant, improve public infrastructure, and train its workforce. These moves will be made in preparation for production of the 2026 R2 SUV.
More: Rivian R2 Starts Around $45,000 And Beats Tesla Model Y To 60 MPH
The model was introduced earlier this year and follows in the footsteps of the R1S. It will ride on an all-new platform and be offered with two different battery packs including one that delivers more than 300 miles (483 km) of range. Rivian has also said we can expect single-, dual-, and tri-motor configurations as well as a starting price of around $45,000.
Rivian CEO RJ Scaringe said, “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.” He went on to thank the State of Illinois as well as Governor JB Pritzker, State Senator Don Harmon, and State Speaker Emanuel Chris Welch.
The automaker has built more than 100,000 vehicles at the plant and has invested more than $2 (£1.6 / €1.9) billion into the facility. The company also claims to have “generated a value add of over $3.9 (£3.1 / €3.6) billion to the local economy, which has brought increased development to the area.”
The news will probably peeve residents of the Peach State as the R2 was originally set to be built in Georgia. However, as the automaker explained in March, building the crossover in Normal significantly reduces the “amount of capital needed to bring [the] R2 to market” and “considerably reduces risk to the launch.”
While construction on the Georgia plant was paused, the automaker has said it “remains an extremely important part of its strategy to scale production” in the long term.