Rivian has set its sights on a noteworthy increase in production in its R2 electric vehicle (EV) model up to 155,000 units at its plant in Normal Illinois. This strategic increase in its R2 production is a big leap for the company to ramp up sales while positioning the R2 to new heights detailing the company’s growth in the EV industry. 

Rivian’s R2, first revealed in March and priced at around $45,000, is becoming a major player in the company’s growth trajectory aiming to take over the U.S. EV market. As it will be produced at Rivian’s Normal plant, the company had outlined in its Q1 earnings report to upgrade the plant to boost production up to 215,000 units annually for its EV models including its R1T, R1S, and its commercial delivery van.

In comparison to Rivian’s progress from last year, the company produced around 57,000 EVs and it expects production to see bigger improvements once the R2 production begins. Moreover, the Normal plant will produce 85,000 R1 EVs and 65,000 commercial vans along with the 155,000 R2. With the R2 taking most of the capacity in the plant’s production, it will serve as the trigger for sales growth. 

The potential to achieve this number is certainly reachable as recently Rivian received a $827 million incentive package from the State of Illinois Department of Commerce & Economic Opportunity to increase manufacturing operations at the Normal plant. With the addition of this incentive package, 155,000 units for the R2 appear more practical than ever. 

As Rivian prepares to ramp up R2 production, the incentive package that will assist in reaching the company’s production goals will place the R2 to potentially breakthrough to the top in the EV market while contributing to sustainable energy solutions in the EV industry. 

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