State said to be negotiating deal to help Rivian expand EV factory in Normal

NORMAL (25News Now) - State government leaders are working on financial incentives to help Rivian Automotive expand its plant in Normal and perhaps hire thousands more new employees, two reliable sources tell 25News.

Rivian’s announcement Thursday that it will start building a more affordable R2 sport utility vehicle in Normal, instead of its unfinished $5 billion plant in Georgia, was considered a big surprise.

Rivian wants R2 production to begin during the first half of 2026, but the Georgia plant won’t be ready in time.

Two reliable sources from the capitol tell 25News that talks are underway to provide Rivian with incentives to help with expansion that could potentially bring another 2,500 jobs to the factory in Normal. Approximately 8,000 people already work there.

Rivian originally received a series of tax breaks from state and local governments to locate in the shuttered Mitsubishi plant on Normal’s west side.

Rivian spokesperson Kelli Felker declined to comment on new incentives or expansion of the local workforce. Felker did say that building the R2 will require “limited physical expansion of the plant for our body shop and paint shop.”

“We are largely able to reconfigure portions of the plant for our general assembly, battery and drive unit lines,” Felker said.

Investors have reacted favorably to the unveiling Thursday of the R2 SUV and a pair of R3 models, which would be made in Georgia.

Rivian’s stock price rose 13.5% Thursday and another 2.2% Friday to end the week at $12.78 per share. On Feb. 23, Rivian shares fell to an all-time low of $10.07 amid concerns about demand for EVs and the announcement that Rivian planned to make 57,000 vehicles in Normal this year, the same amount produced in 2023.

Rivian’s share price has fallen 90% since the company’s high-profile initial public offering in November 2021.

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