Rivian Automotive Inc. (NASDAQ:RIVN) shares traded lower on Tuesday. The EV maker is investing heavily in its operations in Normal, Illinois, with the development of a new supplier park near its electric vehicle manufacturing facility.
Governor JB Pritzker and Rivian said that the company is investing nearly $120 million to build a 1.2 million-square-foot facility that will host component suppliers near its existing EV factory.
The move is expected to create nearly 100 new jobs directly at Rivian while drawing several additional suppliers to the region.
The project is part of Rivian's broader push to streamline its production process and deepen relationships with suppliers as it scales up operations.
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The supplier park will bring several of Rivian's key partners closer to the assembly line producing the R1 and upcoming R2 models, enabling faster, more coordinated delivery of materials and parts for its electric vehicles. Some suppliers will also conduct light manufacturing and part assembly on-site.
Rivian staff at the new supplier park will be responsible for organizing and preparing parts for assembly before they're moved to the primary manufacturing site.
To streamline transport and reduce surface traffic, an underground tunnel is being built to link the new park directly with the main production facility.
The project is supported by a $16 million incentive package from the State of Illinois. This includes a $5 million REV Illinois tax credit spread over 20 years, with the remainder coming in the form of capital grants.
Under the terms of the agreement, Rivian is obligated to create at least 93 full-time jobs and invest nearly $120 million in the development.
Construction of the supplier park is already underway, with completion targeted for 2026.
Adjacent to the supplier park, Rivian is already working on a 1.1 million square foot expansion of its primary facility. Production of the R2 is expected to begin in 2026.
Rivian currently produces its entire vehicle lineup at the Normal plant, including the R1T pickup, R1S SUV, the Amazon Electric Delivery Van (EDV), and the new Rivian Commercial Van now available to fleets of all sizes.
Price Action: RIVN shares traded lower by 1.11% at $13.40 in premarket at last check on Tuesday.
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