Rivian gets $827 million in incentives for Illinois plant expansion, shares rise

Rivian Automotive announced Thursday that it has received an $827 million incentive package from the state of Illinois to expand operations at its Normal plant.

Shares of the Irvine, California-based company rose nearly 10% in afternoon trading after losing more than 60% of their value this year through Wednesday's close.

The Illinois factory, where Rivian also makes its electric delivery trucks for its largest investor, can produce 150,000 vehicles per year, according to the company.

Rivian will produce its cheaper R2 midsize SUV model, introduced in March, at the factory to take on Tesla's Model Y

With the addition of the R2, Rivian expects a total annual capacity of 215,000 vehicles.

The company said funding from the state of Illinois would be used for plant expansion, public infrastructure improvements and job training programs for its workforce.

The incentive package would increase Rivian's cash and cash equivalents inventory by $7.86 billion at the end of last year.

Earlier this year, Rivian said it expected to incur capital spending of about $1.75 billion in 2024, driven by additional investment in a second plant just outside Atlanta, Georgia, but has since suspended construction of the plant interrupted.

Construction in Georgia would resume later as that site “remains a critically important part of the long-term strategy,” Rivian said.

Rivian, which will report first-quarter results next week, raised more than $3 billion through two bond offerings last year, but some analysts and investors expect the company to need additional capital through 2026.

Anna Harden

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