Rivian announces pricing for midsize R2 SUV, set to roll off line in Spring
Published in Business News
Two years after Rivian announced the midsize R2 SUV would be built at its Normal, Illinois, plant, the first versions of the potentially game-changing EV are packaged, priced and getting ready to roll off the line this spring, the company announced Thursday.
Starting prices range from $45,000 to $58,000 — substantially lower than its full-size SUV — which could position Rivian as a mass market EV automaker, substantially ramping up production in the downstate college town.
“R2 embodies so many of our learnings that we have accumulated — the passion and attention to detail from our team is visible everywhere,” Rivian CEO and founder RJ Scaringe said in a news release.
First up is the aptly named Launch Package version of the 2027 R2 Performance model, which starts at about $58,000 and features a dual-motor, all-wheel-drive powertrain producing 656 horsepower. That takes the top-of-the-line R2 from 0-60 mph in 3.6 seconds, with an estimated range of 330 miles on a full charge. The package also includes a lifetime subscription to Autonomy+, Rivian’s hands-free driving feature. Deliveries will start in the Spring, the company said.
Later in the year, the 2027 R2 Premium will be available for delivery starting at about $54,000, producing 450 horsepower and a 0-60 mph time of 4.6 seconds. It also has a 330-mile range, Rivian said.
The 2028 R2 Standard will hit the road during the first half of next year, with a starting price at about $48,000, delivering 350 horsepower, 0-60 mph in 5.9 seconds and a range up to 345 miles. An even more affordable Standard variant is planned for late 2027, with a starting price of $45,000.
While Rivian is not yet taking specific orders, customers can reserve an R2 online with a $100 refundable deposit. Expectations for the new R2 are high, with the company receiving over 100,000 deposits by July 2024 — four months after announcing the vehicle. Rivian has not updated the R2 reservation totals since then.
California-based Rivian began building its full-size electric R1T pickup truck, the R1S SUV and its commercial delivery vans in September 2021 in a former Mitsubishi auto plant on the outskirts of Normal.
Current prices for the R1S SUV range from $77,000 for a dual-motor Standard to $122,000 for the top-of-the-line quad-motor version. Last year, Rivian produced 42,284 vehicles — including trucks and delivery vans — at its Normal plant, the company’s sole manufacturing facility.
In March 2024, Rivian revealed that the midsize R2 would be made alongside its inaugural lines in Illinois, putting plans to build a $5 billion Georgia plant on hold.
Backed by $827 million in state incentives, Rivian expanded its 4.3 million-square-foot Normal plant by an additional 1.1 million square feet. The company promised to create more than 550 assembly jobs over five years to build the midsize R2 SUV, and hiring has already begun, a Rivian spokesperson said.
The Rivian plant had about 7,000 assembly workers in April 2024, when it streamlined operations and went from three to two shifts. Last year, the plant moved to a one-shift operation, but plans to ramp up to three shifts for R2 when it is in full production, the company said.
In October, Rivian laid off more than 600 employees, or roughly 4.5% of its workforce, but no manufacturing employees were affected. The Rivian global workforce numbered 15,232 at the end of 2025, including a joint venture with VW, according to the annual report. The company declined Thursday to provide the current number of employees in Normal.
The R2 ramp-up comes as a core group of workers have been frustrated by efforts to join the UAW for several years. Despite some broader support, unionization has failed to gain traction at the plant, according to one organizer.
Plant workers are also concerned about the recent death of 61-year-old Kevin Lancaster, a contractor who was crushed between a tractor trailer and a loading dock last week at a Rivian warehouse near the Normal factory. The Occupational Safety and Health Administration has opened an investigation into the incident.
“Safety at our facilities is our top priority,” a Rivian spokesperson said in a statement. “Unfortunately last week, a contractor passed away after an incident at our warehouse. Our sympathy and thoughts are with their family and friends. We are working with authorities on their investigation.”
While analysts believe the midsize R2 will be a catalyst for Rivian sales, it is launching into some industry headwinds that have slowed adoption for electric vehicles.
EV sales hit a record 1.3 million units in 2024, accounting for 8.1% of total auto sales in the U.S., according to Cox Automotive’s Kelley Blue Book. But last year, EV demand declined to 7.8% of total sales, falling off a cliff in the fourth quarter with the end of a $7,500 federal tax credit as part of President Donald Trump’s “one big beautiful bill,” which eliminated the Biden-era EV incentive.
As buyers raced to take advantage of the expiring federal tax credits, EV sales peaked at 10.5% of the total new car market in the third quarter of 2025, before plunging to 5.8% in the fourth quarter, according to Cox.
EV sales accounted for about 6% of total new car sales in January, with Tesla the leading brand, followed by Hyundai, Toyota, Cadillac and Rivian, according to Cox. But Rivian is hoping to get a larger slice of the EV pie as its more affordable R2 rolls out this year, and Thursday’s pricing announcement of the midsize SUV could be the start of something big.
©2026 Chicago Tribune. Visit at chicagotribune.com. Distributed by Tribune Content Agency, LLC.











Comments