Topline
Rivian shares increased as much as 9% in intraday trading Wednesday following an announcement it will receive $827 million from the state of Illinois for the expansion of its plant in the city of Normal, furthering its investment in the facility about two months after it indefinitely paused plans for a $5 billion plant in Georgia.
Rivian's stock is down more than 44% in the past six months. (Photo by Justin Sullivan/Getty Images)
Key Facts
Rivian’s stock, which opened Thursday at $9.42, traded up as high as 9% before settling down to $9.83—up 6.7% on the day.
The $827 million incentive package will be provided by the State of Illinois Department of Commerce & Economic Opportunity and be allocated toward the expansion of Rivian’s plant and job training programs for its employees.
Updates to Rivian’s plant in Illinois will begin in the coming months, according to the announcement, as the plant continues to produce the automaker’s R1S (SUV) and R1T (pickup truck) models alongside commercial electric delivery vehicles.
The Rivian gains made Thursday contribute to a more than 14% increase in share price made in the last five days, though the automaker’s share price is down more than 44% in the past six months.
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Big Number
$2 billion. That’s how much Rivian has invested into its Illinois plant, which has manufactured more than 100,000 electric vehicles.
Tangent
Billionaire Illinois Gov. J.B. Pritzker has sought to bring in tech companies to the state with various initiatives. Pritzker and battery manufacturing company Gotion announced in September a $2 billion electric vehicle battery gigafactory in Manteno.
Forbes Valuation
We estimate Pritzker’s net worth at $3.5 billion—a figure attributable to his being an heir of the Hyatt Hotel fortune and his private equity firm Pritzker Group.
Key Background
Rivian’s Illinois plant will also host the production of its R2 and R3 models, vehicles with 300 miles of range that were initially slated to be produced in Georgia ahead of their 2026 deliveries. The automaker indefinitely paused its $5 billion production facility in Georgia in March, revealing it planned to move production of the R2 to Illinois to provide a “considerable reduction in the capital” needed for the launch of the five-seat SUV.
Further Reading
Rivian Pauses Planned $5 Billion Georgia EV Plant—And Its Shares Surge (Forbes)
Rivian Shares Pop As CEO RJ Scaringe Shows Off 3 Small Electric Crossovers (Forbes)
