May 7, 2025 – On Monday local time, U.S. electric vehicle manufacturer Rivian unveiled a $120 million investment plan to establish a supplier park adjacent to its factory in Normal, Illinois.
This move comes on the heels of the company’s previously announced $1.5 billion expansion initiative for its Illinois – based production facility.
According to Rivian’s CEO, RJ Scaringe, the supplier park, spanning 1.2 million square feet, is designed to cut down on logistics expenses and expedite the production of the 2026 Rivian R2 SUV. It is expected to generate nearly 100 direct jobs and hundreds more in the coming two years.
Scaringe explained that the supplier park would handle component manufacturing and assembly tasks. Connected to the main factory via underground tunnels, it is described as “a pivotal element in boosting production capacity when the R2, R1 series, and commercial vans are produced simultaneously in 2026.”
Moreover, this initiative is a strategic response to the U.S. government’s move to impose higher import tariffs. Although Rivian currently manufactures its vehicles domestically, a significant portion of its components still relies on imports.
Prior to this, automotive giants like Mercedes – Benz, Honda, Nissan, and Toyota had all announced plans to expand their local production operations. J.B. Pritzker, the Governor of Illinois, expressed his optimism, stating that the project would facilitate the construction of an electric vehicle ecosystem in the state and “draw investments from global suppliers.”
In an effort to conserve its cash reserves, Rivian halted the construction of its new factory in Georgia in 2023 and shifted the R2 production to its Normal factory. The R2 is anticipated to enter mass production in the first half of 2026.
Earlier this year, in January, Rivian secured a $6.6 billion loan from the U.S. Department of Energy. The company plans to resume the construction of its Georgia factory in 2026, with R2 and the subsequent R3 crossover models set to roll off the assembly line there starting in 2028.
The Illinois state government has also pledged to offer the supplier park 16millioninincentives.Theseincentivesincludea20−yeartaxbreakandcapitalgrantsvaluedatover5 million.
In return, Rivian is required to invest at least $119.6 million and create 93 jobs. Currently, the Normal factory has an annual production capacity of 215,000 units, manufacturing the R1T pickup truck, R1S SUV, and commercial electric vans.
