Rivian gets $827 million boost from Illinois to expand its factory in the state

MW Rivian gets $827 million boost from Illinois to expand its factory in the state

By Claudia Assis

The EV maker's Normal, Ill., plant is slated to build its next-gen car, the R2

Rivian Automotive Inc. said Thursday that it has received $827 million from the state of Illinois to expand operations at its plant in Normal, Ill.

Rivian said that the money will go toward factory expansion, as well as improvements in public infrastructure and job training for its workforce as the plant - located about 140 miles southwest of Chicago - gears up to make the company's next generation of electric vehicles.

Shares of Rivian $(RIVN)$ rallied more than 9% after the announcement.

Rivian said in March that it would make its R2, a much-anticipated all-electric midsize SUV, at the Normal plant. The facility will also continue to produce Rivian's R1S, a full-size SUV, the R1T, a full-size pickup truck, and Rivian's commercial electric delivery vehicles.

In a surprise move, Rivian also said that it had paused construction on its $5 billion factory in the state of Georgia.

Keeping R2 production at the existing Illinois plant earned praise from Wall Street, as it was expected to keep costs in check and ensure Rivian is funded through the start of the R2 production - likely without having to raise further capital this year.

Updates to the facility will begin in the coming months, Rivian said.

Shares of Rivian have lost 57% this year to date, compared with gains of around 6% for the S&P 500 index SPX.

-Claudia Assis

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May 02, 2024 15:17 ET (19:17 GMT)

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