Rivian investing $120 million in Illinois supplier park to produce more affordable R2 SUVs

From Yahoo Finance: 2025-05-05 13:21:00

Rivian plans to invest $120 million in a supplier park near its Illinois plant to produce more affordable R2 SUVs. The park will reduce costs and create jobs. Some suppliers will assemble parts there, aiding in faster production. Rivian paused a Georgia plant to focus on R2 SUV production in Illinois.

Rivian aims to build R2 SUVs and R3 crossovers at the Georgia plant from 2028. The company reported a 36% decline in first-quarter deliveries, citing soft demand and fires in Los Angeles. Rivian’s investment in the supplier park addresses challenges faced by automakers due to tariffs on imports.

Trump signed orders to lessen the impact of auto tariffs, providing relief on materials. Rivian, which imports parts, is affected by these tariffs. The company is set to report first-quarter earnings soon, revealing the impact of challenges and changes in the industry.

Read more: Rivian to build $120 million supplier park in Illinois