Rivian’s shares saw a 9% increase in trading on Wednesday following an announcement that the company will receive $827 million from the state of Illinois for the expansion of its plant in Normal. This investment comes just two months after Rivian put its plans for a $5 billion plant in Georgia on hold indefinitely. The incentive package from Illinois will go towards expanding the plant and providing job training programs for employees. The updates to the plant will begin in the coming months and will support the production of Rivian’s R1S and R1T models, as well as commercial electric delivery vehicles.
The stock price for Rivian opened at $9.42 on Thursday and rose as high as 9% before settling at $9.83, marking a 6.7% increase for the day. This recent increase in share price has contributed to a more than 14% jump in the past five days, although the overall share price is still down more than 44% in the last six months. Rivian has invested $2 billion into its Illinois plant, which has already produced over 100,000 electric vehicles.
Illinois Governor J.B. Pritzker has been proactive in bringing tech companies to the state, with initiatives like the incentive package for Rivian and the announcement of a $2 billion electric vehicle battery gigafactory in Manteno with Gotion. Pritzker’s net worth is estimated at $3.5 billion, thanks to his inheritance from the Hyatt Hotel fortune and his private equity firm Pritzker Group. The Illinois plant will also see the production of Rivian’s R2 and R3 models, which were originally planned to be produced in Georgia but will now be made in Illinois, leading to a reduction in capital needed for the launch of the five-seat SUV.
Rivian’s expansion in Illinois comes as the company continues to receive positive attention in the market, with its recent stock increases and ongoing production of electric vehicles. The Illinois plant will play a key role in the production of Rivian’s SUVs and pickup trucks, as well as its commercial electric delivery vehicles. Despite the challenges faced by the automaker in the past six months, including the suspension of plans for a plant in Georgia, Rivian remains committed to its growth and investment in the electric vehicle industry. The announcement of the $827 million incentive package from Illinois signals a significant step forward for Rivian as it continues to expand its operations and innovate in the EV market.
