Rivian, which is gearing up to launch its new midsize R2 electric SUV, is building a $120 million supplier park near its Normal plant to facilitate increased production.
The announcement Monday will add a 1.2 million-square-foot supplier park and about 100 jobs to the expanding production operation of the California-based EV automaker, which manufactures its entire fleet in the college town about 130 miles south of Chicago.
Construction on the 1.2 million-square-foot supplier park is underway and expected to be completed in 2026, in time for the rollout of the much-anticipated R2.
“We are excited to see this supplier park coming together so quickly,” Rivian CEO and founder R.J. Scaringe said in a news release. “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.”
Rivian began building its full-size electric R1T pickup truck, R1S SUV and commercial delivery vans in a former Mitsubishi auto plant on the outskirts of Normal in September 2021. Last year, Rivian revealed that the R2 will also be made in Illinois, putting plans to build a $5 billion Georgia plant on hold.
Backed by $827 million in state incentives, Rivian is expanding its 4.3 million-square-foot auto plant by an additional 1.1 million square feet and creating more than 550 assembly jobs over five years to build the midsize R2 SUV, which is expected to begin rolling off the production line in 2026.
Rivian is seeking to lure new buyers at price points well below its first-generation SUV and truck, which cost upward of $80,000. The R2 will be priced starting at $45,000.
The plant had about 7,000 assembly workers in April 2024, when it streamlined operations and went from three to two shifts. Rivian had 14,861 employees across North America and Europe at the end of 2024, but declined Monday to update the current number of employees in Normal.
The new supplier park will allow Rivian to bring key component manufacturers to Normal to build and assemble parts needed to produce the EVs. Rivian will construct an underground tunnel between the supplier park and the main plant that will ensure efficient operations while avoiding increased traffic on local roads, the automaker said.
In addition to direct Rivian employees, the park is expected to bring hundreds of new supplier jobs to Normal. “Rivian’s investment will attract suppliers from across the globe to invest in Illinois and continue to create good-paying jobs, providing Illinois with the competitive edge to thrive in the clean energy economy,” Gov. JB Pritzker said in the news release.
Last year, Rivian produced 49,476 and delivered 51,579.EVs from its Normal plant, with slightly lower production guidance for 2025.
During the first quarter, the automaker built 14,611 vehicles at its Normal plant and delivered 8,640 vehicles, reflecting a “challenging demand environment,” driven in part by the fires in Los Angeles, a key market for Rivian, the company said last month.
EV sales hit a record 1.3 million units last year, accounting for 8.1% of total auto sales in the U.S., according to Cox Automotive’s Kelley Blue Book. Tesla remains the top selling EV brand, although it showed the largest year-over-year volume decline of any manufacturer as legacy automakers increase their offerings and continue to gain traction.
Total new vehicle sales reached nearly 16 million in 2024, according to Cox.
The industry could face additional challenges this year from President Trump’s auto tariffs, which are meant to stimulate domestic manufacturing, but economists say they will raise car prices and tamp down sales. On Saturday, a 25% tariff on imported auto parts kicked in, following last month’s 25% tariff on all imported vehicles.
Although Rivian builds its vehicles in Normal, it will still be subject to the tariffs on parts such as batteries, which it imports from Asia.
rchannick@chicagotribune.com
