Rivan Commits $120 Million to Illinois Supplier Hub to Accelerate EV Production

Rivian is investing nearly $120 million to establish a supplier park adjacent to its plant in Normal, Illinois, aiming to support the production of its upcoming, more affordable R2 SUVs starting next year. The new facility is expected to streamline logistics, reduce shipping costs, and enhance warehousing capabilities, while creating hundreds of jobs over the next two years—about 100 of which will be directly employed by Rivian.
The supplier park will serve as a critical component in Rivian’s broader strategy to expand its manufacturing capacity, particularly as the company prepares to ramp up production of its smaller R2 model alongside its existing flagship vehicles, the R1S SUV and R1T pickup, all built at the Normal plant. CEO RJ Scaringe emphasized that this development will be vital in supporting increased output in 2026, enabling Rivian to produce multiple vehicle models and commercial vans more efficiently.
The Illinois investment builds on Rivian’s recent plans to shift the production of its new R2 SUV from Georgia to Illinois. While the Georgia plant’s construction was paused as part of a cost-saving move, the company secured a $6.6 billion loan from the Department of Energy to resume work there, with plans to start operations in 2028. Regardless, Rivian will continue EV manufacturing at its Illinois facility, which is designed to produce up to 215,000 vehicles annually.
The Illinois government is supporting Rivian with a $16 million incentive package, including a 20-year tax incentive valued at over $5 million, along with grants to help develop the supplier park. The company must invest at least $119.6 million and create a minimum of 93 jobs, reinforcing its commitment to regional growth and the expanding U.S. EV industry.
This strategic expansion comes at a time when automakers are increasingly investing in U.S. manufacturing to mitigate tariffs and trade disruptions. Rivian’s move aligns with broader industry trends, as traditional automakers like Mercedes-Benz, Honda, Nissan, and Toyota seek to bolster their domestic production capabilities and reduce reliance on imports amidst ongoing trade tensions.