Rivian invests $120M in Illinois to boost R2 production

Driving the news: Rivian $RIVN ( ▲ 2.05% ) just committed $120 million to build a supplier park near its Illinois manufacturing plant, gearing up for production of its more affordable R2 SUVs in 2026.

The details: The supplier park will create hundreds of jobs over the next two years, cut logistics costs, and connect to the main plant through an underground tunnel where parts will be kitted and sequenced.

Why it matters: After shelving plans for a Georgia plant last year, Rivian is consolidating R1 and R2 production at its Normal, Illinois facility to conserve cash. At the same time, it's betting on a supplier park strategy to cut costs—just as Trump’s proposed auto tariffs loom over global supply chains.

Worth noting: The supplier park is expected to be completed in 2026.

What we're watching: Rivian reports Q1 earnings later today, which should reveal if this supplier park gambit is enough to convince investors that its ambitious production timeline for the make-or-break R2 model is actually achievable.

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