Backed by state incentives, Rivian to invest $1.5 billion to build new R2 EV at Illinois plant

Rivian’s decision to launch production of its second-generation electric vehicles in Normal, Illinois, rather than Georgia, will bring $1.5 billion in capital investment and hundreds of jobs to its central Illinois factory, the automaker and Gov. J.B. Pritzker announced Thursday.

Backed by $827 million in state incentives, Rivian plans to expand its 4 million-square-foot auto plant and create more than 550 assembly jobs over five years to build the midsize R2 SUV, which is expected to begin rolling off the production line in 2026.

The majority of the incentives will come from state tax credits paid out over 30 years, if Rivian meets its investment and hiring obligations.

“They’re growing now and they had the opportunity to grow in Georgia or in Illinois,” Pritzker said during a news conference at the Rivian plant. “We wanted them to stay right here and create jobs here. That was why we put an incentive package together and made that offer to Rivian.”

In March, Rivian revealed the R2 and the smaller and sportier R3 crossover, springing the news that the R2, at least initially, will be made in Illinois, putting plans to build a $5 billion Georgia plant on hold.

Rivian is expected to expedite getting the R2 to market and save more than $2.25 billion in capital expense by launching production alongside its full-sized R1 lineup in Normal, the company said.

The company received more than 68,000 preorders for the $45,000 R2 within 24 hours of its online debut.

“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,” Rivian CEO and founder R.J. Scaringe said in a news release.

Rivian builds its inaugural full-size electric R1T pickup truck, R1S SUV and commercial delivery vans for Amazon and AT&T in a former Mitsubishi auto plant on the outskirts of the college town about 130 miles south of Chicago.

The startup EV manufacturer was initially lured to Illinois by $4 million in local incentives and about $50 million in state tax credits over 15 years if it meets employment and investment targets at the Normal facility. Those goals included creating 1,000 jobs by 2024, a number it has long since surpassed.

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