Rivian has announced a significant $120 million investment for the development of a supplier park near its Normal, Illinois plant. The new park, which will span 1.2 million square feet, is expected to attract key suppliers to streamline Rivian's material supply process, enhancing its overall production efficiency.

“We are excited to see this supplier park coming together so quickly,” said RJ Scaringe, Founder and CEO of Rivian. “This will be a key enabler to increasing production at the plant in 2026 when we start to build R2 in addition to R1 and our commercial vans.”

A select group of Rivian’s suppliers will be stationed at the park to handle light assembly and manufacturing. Rivian employees will manage the kitting and sequencing of parts at the park before they are transported to the main plant for assembly. The company has also planned an underground tunnel between the park and the main plant to ensure efficient operations while minimizing traffic congestion in the surrounding areas.

Construction on the supplier park is already underway, with expectations that it will provide nearly 100 direct jobs at Rivian. The Illinois state government is offering an incentive package to assist with the project’s start-up costs, as well as supporting infrastructure improvements. Tax credits will be linked to the creation of new jobs.

Governor JB Pritzker commented, “In Illinois, we aren’t just making electric vehicles: we are creating an entire ecosystem – attracting investments, bolstering our workforce, and strengthening the EV manufacturing supply chain.” He added that Rivian’s investment would encourage global suppliers to invest in the state and help Illinois maintain a competitive edge in the clean energy economy.

The town of Normal is also contributing by improving local roads and assisting with the cost of utility infrastructure to the new supplier park, using future tax reimbursements.

In addition to the supplier park, Rivian is also expanding its plant with a 1.1 million-square-foot expansion to accommodate R2 manufacturing. This expansion is a key step in the company’s plan to ramp up R2 production, which is set to begin in 2026.

As part of its ongoing strategy to strengthen its operations in the U.S. and address increasing demand for electric vehicles, Rivian’s supplier park initiative is designed to foster a more localized and efficient production process. The park is expected to reduce supply chain delays by allowing essential parts to be assembled and sequenced on-site before they are transported to the main plant.

This strategic move will not only bolster Rivian’s production capabilities but also provide significant benefits to the local economy. With new jobs, infrastructure improvements, and the attraction of global suppliers, the project is expected to catalyze further economic development in the region.

Rivian’s CEO, RJ Scaringe, also noted that the supplier park plays a crucial role in supporting the company’s ambitious plans for its R2 vehicle line, which will be a vital part of Rivian's long-term vision for expanding its electric vehicle offerings. The company’s focus on vertically integrating its supply chain and localizing production will enhance its ability to meet the growing demand for electric vehicles across the country.

Originally reported by Teresa Moss in RDN.