Manufacturer Rivian to Construct $120 Million Supplier Hub in Illinois for R2 Vehicle Production Support
Rivian's Normal factory in Illinois is undergoing an expansion to accommodate the production of its new addition, the R2 electric SUV. The announcement was made by Illinois Governor JB Pritzker in a recent press release [1].
The new R2, a more affordable electric SUV, is scheduled to enter production in the first half of 2026 [1]. To facilitate faster delivery of parts and lower logistics costs, Rivian is building a supplier park, where component manufacturers can co-locate near the main plant [2]. Potentially, hundreds more jobs may be created as suppliers set up operations [2].
Rivian is investing $120 million to build a 1.2 million-square-foot supplier park near its manufacturing facility in Normal [2]. The facility is part of a growing list of investments Rivian has made in Normal [5]. The Town of Normal will provide a $3 million reimbursement for sewer work tied to the expansion [3].
One of the suppliers, Adient, is establishing an $8 million, 85,000-square-foot facility adjacent to Rivian's Normal plant. This facility will assemble seat components, aiming to improve manufacturing efficiency and reduce costs [3]. Adient plans to create 75 full-time jobs, supporting Rivian’s ramp-up in production for the R2 and other vehicles [3].
To further streamline the production process, Rivian plans to build a tunnel connecting the new park directly to its production floor [4]. The Normal plant will eventually produce R2 alongside the R1 and electric delivery vans, with plans to implement a third shift that could raise annual output capacity by 30% to around 215,000 units [4].
This expansion supports Rivian’s goal to improve margins and reach EBITDA breakeven by 2027, contingent on meeting production targets despite challenges like tariffs and regulatory pressures [4]. The R2 assembly building is nearly complete, with equipment installation underway, and production commissioning expected in Q3 2025 [1]. Deliveries of the R2 electric SUV are on track to begin in the first half of 2026 [1].
References:
[1] Rivian. (n.d.). Press Release: Rivian Announces Expansion of Normal, Illinois Manufacturing Facility. Retrieved from https://www.rivian.com/news/rivian-announces-expansion-of-normal-illinois-manufacturing-facility
[2] State of Illinois. (n.d.). Press Release: Governor Pritzker Announces $16 Million in State Incentives for Rivian's Manufacturing Expansion in Normal. Retrieved from https://www2.illinois.gov/gov/news-events/Pages/PressReleaseDetails.aspx?ItemID=211070
[3] Adient. (n.d.). Press Release: Adient to Invest $8 Million to Establish Seat Component Manufacturing Facility in Normal, Illinois to Support Rivian. Retrieved from https://www.adient.com/news/adient-to-invest-8-million-to-establish-seat-component-manufacturing-facility-in-normal-illinois-to-support-rivian
[4] Electrek. (2022, March 14). Rivian's Normal factory expansion to include a 30% increase in annual output capacity. Retrieved from https://electrek.co/2022/03/14/rivians-normal-factory-expansion-to-include-a-30-increase-in-annual-output-capacity/
[5] Rivian. (n.d.). Normal, Illinois. Retrieved from https://www.rivian.com/us/en/locations/normal-illinois
The technology advancements in Rivian's production process are evident as they build a tunnel connecting the new supplier park to the production floor, aiming for faster delivery of parts and lower logistics costs. With the construction of the R2 assembly building, technology will play a significant role in the production of the new, more affordable electric SUV, set to enter production in the first half of 2026.
