Rivian Invests $120M in Illinois Supplier Park to Boost R2 Production

Rivian is investing $120 million to build a new supplier park next to its Illinois factory as it prepares to launch its more affordable R2 SUV in 2026. The park will help cut shipping and logistics costs by letting suppliers build parts nearby, which Rivian workers will then organize and send through a tunnel to the main plant. It’s expected to create hundreds of jobs, including about 100 at Rivian.

This move is part of Rivian’s plan to streamline production and conserve cash. The company had originally planned to build R2 at a new Georgia plant but paused construction to focus on getting R2 out faster from its existing facility.

Rivian, like other automakers, is also navigating new tariffs under President Trump, which could raise the cost of imported parts. Even though Rivian builds its vehicles in the U.S., many components still come from overseas.

The company is expected to report earnings Tuesday after a tough first quarter, where deliveries dropped 36%.