Rivian’s expansion of its manufacturing footprint remains on schedule as the company prepares to begin production of its R2 SUV at its Normal, Illinois facility in 2026, Chief Operations Officer Javier Varela said.
In an interview published Wednesday on the company’s website, Varela said the EV maker is adding 1.1 million square feet to its existing 4.3 million-square-foot plant in Normal to accommodate the upcoming R2 model.
Scheduled to begin production in the first half of next year, the $45,000 model will be Rivian‘s fourth vehicle line after the R1S SUV, R1T pickup, and commercial vans built for Amazon.
As reported by EV this week, Rivian has delivered about 10,000 units to Amazon between last December and June. The retail giant now has over 30,000 Rivian vans in its U.S. fleet and a few hundred in Germany.
“The R2 expansion is firmly on track,” Varela said, adding that equipment is already arriving ahead of a planned factory shutdown later this year.
“We’re designing our line layouts expressly for flow, with just-in-time material delivery to minimize lead times and inventory costs,” he added.
The COO emphasized the company’s focus on lean manufacturing through its Rivian Production System (RPS), which he said integrates automation, robotics, and artificial intelligence.
Baird said earlier this week it expects Rivian to miss Wall Street estimates for second-quarter vehicle deliveries, as the company prepares to make a one-month factory retooling.
The company in May lowered its full-year delivery guidance to between 40,000 and 46,000 vehicles, down from a previous range of 46,000 to 51,000 units.
“Our products are sophisticated and we use cutting edge technology, including AI, to constantly improve our manufacturing processes,” Varela stated. “But the people that work at this plant and the community we’re in are truly the most important story.”
In parallel with the Illinois expansion, Rivian is moving forward with construction of its second U.S. manufacturing facility in Stanton Springs, Georgia.
“When completed, our plant in Georgia is expected to employ thousands more people, will have the capacity to assemble more than 400,000 vehicles per year to be shipped globally and will have a high level of vertical integration,” he said.
The company has just sharply reduced lease prices for its flagship R1T electric pickup and R1S SUV in the United States as Rivian prepares to launch updated 2026 model year versions later this year.
Motor Intelligence data showed Rivian registered 2,970 vehicles in April and 3,688 in May in the United States. That brings its second quarter to-date total to 6,658 units, down from 7,559 during the same period last year.
As of the time of writing, Rivian shares are trading 0.4% higher during Thursday’s pre-market session at $13.81.
