With plans to expand its Normal EV facility, Rivian (RIVN), having recently announced that R2 production would begin in Illinois, is well-positioned to get more incentives.
Discover the Less Expensive R2 Electric SUV from Rivian
Last week, Rivian debuted its more compact and reasonably priced R2 electric SUV at its new showroom in Laguna. RJ Scaringe, CEO of Rivian, had a “one last thing” moment and shocked the audience by revealing the even more compact and reasonably priced R3.
There was more scaring to come. He advanced it further by presenting the tough tri-motor R3X. The R3X is Rivian’s interpretation of a high-performance electric crossover, including three motors, bigger wheels, and increased ground clearance.
The R2 from Rivian is simply a scaled-down R1S that is available for less money. Based on the next-generation EV platform from Rivian, it will offer the most flexibility while reducing costs.
All R2 variants will have a range of more than 300 miles, and they will be available with single, dual, or triple motor configurations. The base model from Rivan will cost approximately $45,000.
Scaringe claims that a lot of excitement is already being created around the R2. In less than a day, over 68,000 bookings for the R2 were made, according to a post made by Rivian’s CEO on his X Friday.
In order to expedite its debut, Rivian disclosed that it would begin producing R2 in its Normal, Illinois facility. Although Rivian had originally intended to produce R2 in its planned $5 billion EV plant in Georgia, the decision will expedite R2’s launch and save $2.25 billion.
IL will provide Rivian with additional incentives to produce R2
As it gets ready to construct R2 throughout the state, the State of Illinois is coordinating with Rivian to secure more incentives.
Illinois is stepping up its efforts to support the EV manufacturer by planning major expansions at its Normal site, according to Automotive News. The Illinois Department of Commerce & Economic Opportunity stated that the components of an economic development package were still being determined.
“We will notify the public about the specifics of the incentive package as soon as they are finalized.” Rivian is postponing its Georgia facility, but this isn’t supposed to have a big impact.
The goal is to exit R2 as soon as possible. Rivian said that it will increase the plant’s yearly production capacity to up to 215,000 units, a 43% increase over the prior goal of 150,000.
To accommodate the increased capacity, Rivian has not yet stated if it would alter or expand the plant. AN claims that an expansion may make Rivian eligible for further financial rewards for introducing R2 to Illinois.
In a letter to the Atlanta Journal-Constitution (AJC), Scaringe affirmed that Rivian is “absolutely dedicated to bringing our Georgia plant to life with good jobs, economic development, and a product to be proud of.”
“I want to be absolutely clear that we remain committed to building our future in Georgia,” stated the leader of Rivian.
Production of R2 will now commence in early 2026. The smaller and even more reasonably priced R3 and tri-motor R3X will then go on sale.
The stock of Rivian (RIVN), which fell more than 45% this year and reached a record low last month, has increased by about 20% in the last five trading days following the release of the R2. Right now, Rivian shares have dropped by about 5% during the previous year.
Electrek’s Opinion
In its quest to grow the brand, Rivian saves much-needed funds by starting construction on R2 in Illinois.
Last month, CFO Claire McDonough expressed confidence that the EV manufacturer’s cash and equivalents would cover operations through 2025. Rivian currently expects to have enough funds through the start of R2 production by relocating R2 production to Illinois.
Rivian anticipates that this quarter’s anticipated improvements in Normal will lower material costs later in the year. The fourth quarter saw a “modest growth profit” for the EV manufacturer.
Nonetheless, Rivian anticipates deliveries to be roughly 57,000, which is comparable to previous year, due to the stoppage.
Given that Gigafactory Mexico is behind schedule, Rivian is looking to follow Tesla’s lead and locate its next-generation EV assembly facility in Texas.
Like Tesla, Rivian can expedite the release of the R2 while saving costs by starting manufacturing at an already-existing facility.
Topics #R2 Production #Rivian (RIVN)