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Rivian Secures $16M Incentives for Illinois Supplier Park to Support R2 Production

The $120M facility aims to streamline supply chains, reduce tariff costs, and bolster production of the affordable R2 EV in 2026.

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024.  REUTERS/Joel Angel Juarez/File Photo
New Ford Edges sit on a production line as Ford Motor Company celebrates the global production start of the 2015 Ford Edge at the Ford Assembly Plant in Oakville, Ont., on Feb. 26, 2015. The Canadian and Mexican governments are pressing the U.S. to explain its auto proposal at the current round of NAFTA talks.
A Lucid Motors facility is pictured in Costa Mesa, California, U.S.,November 1, 2023. REUTERS/Mike Blake/File Photo
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Overview

  • Rivian is investing $120 million to construct a 1.2 million-square-foot supplier park near its Normal, Illinois, plant, supported by $16 million in state incentives.
  • The supplier park will co-locate key component suppliers, aiming to lower logistics and tariff-related costs while enhancing production efficiency.
  • Rivian CEO RJ Scaringe confirmed that the park will play a critical role in ramping up production of the $45,000 R2 model, set to launch in the first half of 2026.
  • The project is expected to create approximately 100 direct jobs initially, with potential for hundreds more as suppliers establish operations on-site.
  • Rivian has revised its 2025 delivery forecast to 40,000–46,000 units, citing increased costs from tariffs and economic uncertainty.