Rivian Automotive mentioned on Thursday it has acquired $827 million in an incentive bundle from the State of Illinois to develop operations at its Regular facility.
The Irvine, California-based firm’s shares rose practically 10% in afternoon commerce after having misplaced greater than 60% of their worth this 12 months, as of Wednesday’s shut.
The Illinois plant, the place Rivian additionally makes its electrical supply vans for its largest investor, Amazon.com, can produce 150,000 automobiles a 12 months, the corporate mentioned.
Rivian might be producing its less-expensive midsize SUV R2 mannequin, unveiled in March and can tackle Tesla’s Mannequin Y, on the plant
With the addition of the R2, Rivian expects a complete annual capability of 215,000 automobiles.
The corporate mentioned the funds from the state of Illinois could be spent on increasing the plant, bettering public infrastructure and job coaching packages for its workforce.
The motivation bundle would add to Rivian’s stability of money and money equivalents of $7.86 billion at finish of final 12 months.
Earlier this 12 months, Rivian had mentioned it expects to spend about $1.75 billion in capital expenditures in 2024, pushed by further funding in a second facility simply outdoors of Atlanta, Georgia, nevertheless it has since paused development of the plant.
Building would resume later in Georgia as that web site “stays an especially essential a part of its long-term technique,” Rivian mentioned.
Rivian, which is about to report first-quarter outcomes subsequent week, raised greater than $3 billion with two bond issuances final 12 months, however some analysts and traders say it is going to want further capital by 2026.
