yes, Rabbit produce wool.
Rabbit hair can also be used for producing wool. Angora rabbits and their dwarf relative the Jersey Wooly are raised for their wool. Rabbits are combed out about every three months to retrieve their hair. Angora rabbits can produce about 3 pounds of hair per year. It is used to make sweaters, gloves and scarves. Jersey Woolies are a dwarf variety of angora rabbit with slightly shorter fur, making them somewhat easier to care for. Because of the delicate nature of angora wool it is sometimes combined with sheep's wool to make it more durable.