Rivian has been awarded $827 million in incentives for the expansion of its Illinois factory to accommodate the production of the R2.
The funds will be provided by the State of Illinois Department of Commerce and Economic Opportunity. Apart from expanding the facility, Rivian will use part of the money to set up supporting infrastructure and train its staff.
The mid-size R2 will roll off the assembly lines in the expanded factory after Rivian moved the production from its planned Georgia factory. The switch in plans allowed Rivian to bring the R2’s production timeline closer.
Work to upgrade the Illinois factory will start in a matter of months, where it currently assembles the R1T pickup truck, the R1S SUV, and electric vans.
The American company revealed the R2, along with a surprise reveal of the R3 and R3X, about two months ago. While there is no timeline for the R3 and R3x, the R2 will supposedly start from $45,000 after going into production in 2026. The EV gathered more than 68,000 reservations in less than 24 hours.
Despite the change in plans, Rivian has insisted it is committed to building a plant in Georgia, where it can get up to $1.5 billion in incentives, the biggest ever in the state’s history. However, the incentive package is tied to some targets; Rivian will employ 7,500 workers with an average salary of $56,000 before the end of 2028. It must maintain these figures till 2047. The company will be fined for any year the numbers drop by more than 20 percent.
