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Rivian announces $1.5 billion investment in Normal facility, Pritzker talks about incentives

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Illinois

* Press release…

Today, Governor JB Pritzker, Rivian, and the Illinois Department of Commerce and Economic Opportunity (DCEO) joined local leaders and partners to announce a new Reimagining Energy and Vehicles in Illinois (REV Illinois) incentive package for Rivian’s new $1.5 billion investment in Central Illinois. The investment - which will create more than 550 full-time jobs within the next five years alone - will enable the company to produce its highly anticipated R2 model at its Normal, Illinois facility.

“We are taking a tremendous step forward – for our electric vehicle ecosystem, for our economy, and for our state,” said Governor JB Pritzker. “This partnership brings significant investment in the Illinois workforce – including another manufacturing training academy, a dual credit apprenticeship program for high school students, and further support through the Employer Training Investment Program. Not only are we creating the jobs of the future, we are providing Illinoisans the skills they need to fill them.”

“We are grateful for this investment from the State of Illinois and for the leadership of Governor Pritzker, President Harmon, and Speaker Welch,” said RJ Scaringe, Rivian Founder and Chief Executive Officer. “The support from the state will allow us to quickly bring our midsize SUV, R2, to market and provide even greater consumer choice for EVs. Governor Pritzker has always been a strong advocate for providing economic opportunities for Illinois residents and business owners alike. We look forward to continuing our close partnership and building upon the success we have enjoyed.”

Rivian’s $1.5 billion investment in its Normal facility will expand the total capacity for the site to 215,000 units per year, with a focus on the R2 SUV, an affordable and family-friendly EV design. 550+ new, full-time jobs will be created over the next five years to support this manufacturing, all paid at least 120% of the average wage of similar job classifications in McLean County (the agreement estimates a minimum salary of $51,174). The company selected Normal for its historic expansion due to competitive incentives and state support for the project as well as Illinois’ strong workforce, superior infrastructure, and access to suppliers.

“Rivian had many options for its R2 production and its decision to expand in Illinois speaks volumes to the state’s workforce and the strong EV ecosystem Illinois is creating,” said DCEO Director Kristin Richards. “Rivian’s expansion cements our partnership and will bolster the state’s already strong supply chain and help attract and retain other industry heavy hitters while creating good-paying clean energy jobs for Illinoisans.”

Rivian’s total 30-year incentive package from the State of Illinois is valued at $827 million, with the majority of funding derived from REV tax credits with a focus on workforce development. Through REV, Rivian is eligible to receive tax benefits totaling nearly $634 million over the next three decades. The REV agreement specifies the retention of at least 6,000 jobs for the entirety of the agreement period. A link to the executed REV agreement can be found here.

As part of Illinois’ commitment to build out comprehensive EV hubs and support Illinois’ workforce, the State will also fund a second manufacturing training academy in Normal, co-located at the new facility to create a new dual-credit apprenticeship pilot program for high schools. Additional support includes a grant through the Employer Training Investment Program (ETIP) as well as leveraging the State’s existing workforce networks and programs to train and prepare regional employees for new jobs.

Pending an executed agreement, Rivian will also receive Invest in Illinois funding in the amount of $75 million in capital funding to the company. The Fund was signed into law in early 2023 to make Illinois more attractive when vying for large projects in highly competitive sectors like clean energy. Once the agreement is executed it will be posted online.

posted by Rich Miller
Thursday, May 2, 24 @ 1:44 pm

Comments

Does this mean they have totally walked from their plans in Georgia?

Comment by Cool Papa Bell Thursday, May 2, 24 @ 1:46 pm
Mr. Johnson, please take notes.

Comment by One Time Thursday, May 2, 24 @ 1:47 pm
Another billion or two they could have a football stadium

Comment by DuPage Saint Thursday, May 2, 24 @ 1:50 pm
=Another billion or two they could have a football stadium=

If the Bears match the funding Rivian put in already, I’ll support the Bears stadium

Comment by Almost the Weekend Thursday, May 2, 24 @ 2:07 pm
so the 500 hired over the next few years, are they just some of the people they have fired over the last month or so? Also can we hold them accountable for worker safety since they have had at least 2 fires in the last two weeks.

Comment by Neef Jr. Thursday, May 2, 24 @ 2:20 pm
===are they just some of the people they have fired over the last month or so?===

“Felker said the layoffs will not affect hourly manufacturing workers at the Normal facility, which employs more than 8,000 people.”

https://pantagraph.com/news/local/business/rivian-announces-another-round-of-company-wide-layoffs/article_643d3432-fda0-11ee-b8c6-4fc39c732a28.html

Comment by Rich Miller Thursday, May 2, 24 @ 2:22 pm
“We are grateful for this investment from the State of Illinois and for the leadership of Governor Pritzker, President Harmon, and Speaker Welch”

The Mayor RJ Daley philosophy: Be supportive of businesses, while also supporting unions. It doesn’t have to be mutually exclusive. This news further repudiates the previous governor’s and doomsayers’ policy positions.

Comment by Grandson of Man Thursday, May 2, 24 @ 2:24 pm
This is truly great news. I was parked next to one of the pick-ups the other day and while I’m not a luxury car guy, it was cool.

Comment by ArchPundit Thursday, May 2, 24 @ 2:31 pm
==The Mayor RJ Daley philosophy: Be supportive of businesses, while also supporting unions. It doesn’t have to be mutually exclusive. ==

Excellent point. Very true.

Comment by low level Thursday, May 2, 24 @ 2:33 pm
==Does this mean they have totally walked from their plans in Georgia?==

Perhaps. It certainly reflects that they have excess capacity in the Illinois factory. Rivian is building the R1T and R1S way faster than they can sell them.

Comment by SAP Thursday, May 2, 24 @ 3:59 pm
https://www.constructiondive.com/news/rivian-georgia-ev-plant-clayco/714750/

Comment by Out Here In The Middle Thursday, May 2, 24 @ 4:44 pm
=The Mayor RJ Daley philosophy: Be supportive of businesses, while also supporting unions”

The Rivian deal does not require prevailing wage or unionization. Rivian founder/CEO statement is not exactly a welcome to UAW or Machinists…

“We don’t believe in intermediaries,” Scaringe told GQ. “Every car company with the exception of ourselves and Tesla pays a third party to sell their products, they pay dealers 10 to 15 percent. Those intermediaries create a lot of friction. I think the same is true for an intermediary that’s charging essentially a service fee to employees to act on behalf of the employees, which is what a union will do.”

https://www.wglt.org/local-news/2023-11-29/uaw-targets-rivian-and-other-nonunion-automakers-for-unprecedented-organizing-drive

Comment by Donnie Elgin Thursday, May 2, 24 @ 4:51 pm
I’ll always be worried that Bezos is going to stop making rounding errors and cut ties with Rivian. If that ever happens, the company is going to go under faster than a sinking ship.

Comment by TJ Thursday, May 2, 24 @ 4:53 pm
I personally would like to know what, if any, discussions were had about the ability of the surrounding area to house the new workers. Bloomington-Normal leaders have consistently referenced a housing shortage and their own studies have found the needed units number in the thousands, yet there has been minimal development over the past few years. In additiona to minimal housing development, it seems like there has been a minimal push to incentivize new developments as well.

Comment by LincolnCoNative Thursday, May 2, 24 @ 5:01 pm