Illinois-headquartered EV maker Rivian will receive $16 million in state incentives to help fund a new supplier park adjacent to its manufacturing plant in Normal.
State officials said on Monday the company plans to invest $120 million to build the 1.2 million-square-foot facility, which will allow component suppliers to co-locate near Rivian’s assembly operations and support production growth, including the upcoming R2 model.
Rivian produces all its EVs — the R1S SUV, the R1T pickup truck, and the commercial van — in its plant in Normal, Illinois.
Construction of the supplier park is already underway and is expected to be completed by next year. The project is expected to create at least 93 full-time jobs initially, with officials saying it could lead to “hundreds” of additional positions once Rivian‘s suppliers move in.
The incentive package includes $5 million in tax credits through the state’s Reimagining Energy and Vehicles (REV Illinois) program, to be distributed over 20 years, and additional capital grant support.
“We are excited to see this supplier park coming together so quickly,” said Rivian CEO RJ Scaringe. “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.”
The announcement marks the latest in a series of investments by Rivian in Normal supported by government incentives. Exactly a year ago, in May 2024, Illinois committed up to $827 million in tax breaks and other support over 30 years to facilitate R2 production.
“In Illinois, we aren’t just making electric vehicles; we are creating an entire ecosystem,” Governor JB Pritzker said in a statement. “Rivian’s investment will attract suppliers from across the globe and continue to create good-paying jobs.”
Rivian currently produces its R1T pickup, R1S SUV, and electric delivery vans for Amazon at its Normal plant. Production of the more affordable R2 is expected to begin in 2026.
RJ Scaringe commented last month that the potential impact of the auto tariffs imposed by U.S. President Donald Trump is that, despite the company’s “very United States-centric supply chain,” every EV model will face “a real challenge.”
“I think there’s just a lot of questions from consumers around what’s gonna happen,” the chief executive stated, referring to concerns about pricing and available models. “We’re trying to navigate that as thoughtfully as we can,” he added.
Rivian is expanding its Normal plant by more than a million square feet, with the chief executive noting that the company currently employs “just under 17,000” people.
When asked about where the steel and aluminum used in the production come from, Scaringe stressed that the automotive supply chain is “complex” and the brand has “been very focused on building […] our production footprint here in the U.S.”
According to a recent note from Cantor Fitzgerald, Rivian is “one of the most impacted by the auto parts tariffs since the company is not as vertically integrated and is sourcing several components from overseas.”
In a new research note released earlier this Monday, Cantor’s analyst Andres Sheppard said the firm is expecting details on “Rivian’s progress with its Volkswagen Joint Venture (total deal size of ~$5.8B), and on the company’s progress towards commercializing its R2 line, which is slated for SOP in 1H26 (starting price of ~$45,000).”
The company is reporting its first quarter’s financial earnings on Tuesday (May 6), after the market closes.
