Shortly after unveiling the more affordable R2, R3, and R3X models in March, Rivian announced plans to re-adjust production capacity at its existing factory in Illinois to meet market demand. R2 electric SUV at that plant instead of an even larger plant in Georgia that is still on the drawing board.
Recognizing that R2 is critical to the company’s survival, Rivian included the following in its first-quarter financial report, released Tuesday: “We believe launching R2 in Normal mode will create long-term value by improving capital efficiency and reducing risk in launching R2 and the associated ramp.”
With the update, Rivian also revealed exactly what that means in terms of expected production numbers. Currently, the company plans to produce 155,000 R2 electric SUVs at the Illinois plant annually, for a total of 215,000 including other vehicles (including R1S SUVs, R1T pickup trucks and EDVs).
In one year, more R2s have been delivered than Rivian has cumulatively delivered — all models combined — since deliveries began in fall 2021. And expansion will be needed for the Normal, which Rivian has previously said it is limited to factory capacity of about 150,000 vehicles each. year.
Rivian R2
Meanwhile, they say they are aiming to improve R1 production efficiency by about 30%.
With R2 included, this change would represent a large increase in output over Rivian’s current levels. The company produced 57,232 vehicles in full year 2023, while producing 13,980 vehicles in Q1 2024.
In Rivian’s Q1 investor call accompanying the announcement, Rivian CFO Claire McDonough said that peak capacity has some flexibility and will increase to up to 85,000 R1 models or up to 65,000 EDVs.
Rivian points out that the R1S was the fourth best-selling electric vehicle in the US in the first quarter of 2024 — behind only the Tesla Model Y and Model 3 as well as the Ford Mustang Mach-E.
Rivian R2
The new midsize platform, called MSP, will underpin the R2, R3 and R3X, which Rivian notes “is expected to deliver incredible performance, utility and range at a low price.” significantly better than our flagship R1.”
Rivian points to cost efficiency as the core of the MSP vehicle, including the use of high-pressure die casting, structural battery packs and “simplified closures.” It was also teased that they saw the potential of a model with half the carbon footprint of the R1S by 2030.
According to Rivian, the R2 is expected to start at around $45,000 and production will begin in the first half of 2026.
Rivian R3
And then, there’s the possibility R3 and R3X. Rivian did not specify where those models will be produced, but it did say that the R3 “has been designed with a high degree of similarity to the R2” and will be available internationally after its launch in the North. America.
Does that mean confirming those models for Georgia factory is currently on hold remains to be seen. Either way, Rivian will need another serious expansion to make room for the R3 and perhaps more production space for the R2. That could be a difficult situation that Rivian can happily face.
