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Rivianisgetting$827 million in incentive from the state of Illinois to endure building its next - generation electric fomite , known as the R2 .
The company announce Thursday that the Illinois Department of Commerce and Economic Opportunity will dole out the funds , which will be used to enlarge the automaker ’s existing manufacturing plant in Normal , Illinois , to build out underpin infrastructure and boost business training program for its workforce . update to the manufacturing plant will start “ in the coming months . ”
The funding proclamation comes just two months after Rivianunveiledthe midsize R2 SUV , which is supposed to start at around $ 45,000 when it goes on sale in 2026 . It also plans to make and deal a hatchbackcalled the R3that is powered by the same EV political platform that underpins the R2 .
Rivian had initially design to make the R2 at a blade - new $ 5 billion factory in Georgia . But the company announce at the R2 consequence in March that it had settle rather to build the R2 in Illinois , where it presently makes the R1 T pickup truck , the R1S SUV and its commercial electric vanguard .
The decisiveness to pivot away from the Georgia works allows the inauguration to move up the timeline for the R2 SUV and save more than $ 2 billion . Rivian has said it remains committed to building the factory in Georgia . But the company ’s extend losses and struggles to scale yield — it will makearound the same act of EVs this yearas it did last year — forced it to rethink its plans for the next - generation vehicle .
Rivian stand toreceive $ 1.5 billionin incentives from Georgia if it ever builds a factory there . That incentives package , the biggest in the United States Department of State ’s history , comes with several commitments from Rivian , include that it will hire 7,500 people who will earn an mediocre yearly remuneration of $ 56,000 by the terminal of 2028 . Under the accord , Rivian has fit to remain sustainment of these jobs through 2047 . Rivian has to make repayment to the state and joint development authority ( JDA ) in any class in which it is 80 % below its sustentation .
