Abdul Lateef Jameel-backed EV maker Rivian is investing USD 120 mn to build a supplier park expansion near its facility in Illinois, according to a press release issued. The planned project will boost the company’s supply chain as it ramps up production of its smaller and cheaper R2 SUV models next year. Construction is set to be completed in 2026.

The rationale: The park is expected to reduce shipping, logistics, and warehousing costs as suppliers relocate closer to the Rivian production facility. It will also support increased production of its R1 SUVs and commercial vans while creating hundreds of jobs over the next two years.

REMEMBER- Rivian has seen some challenges with deliveries: Rivian reported a 36%decline in 1Q deliveries in April after it expected to deliver between 46k-51k EVs this year, falling short of Wall Street analysts’ estimates of around 54.8K. The company also lowered its annual production forecast for 2024 last October by over 14% due to parts shortage and demand slowdown.

Tags: