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The Intertubes lit up earlier today when the US automaker Rivian announced plans for a new $120 million supplier park right across the road from its existing factory in Normal, Illinois. In another day and age, automotive supplier parks would not be particularly newsworthy. However, this one comes at a fraught time for EV sales in the US, what with the Trump tariffs kicking in as well as the impending loss of the federal tax credit for EVs, among other uncertainties. So, what makes Rivian so certain?
A New Supplier Park To Support EV Sales
The new supplier park will compress Rivian’s supply chain, enabling it to ramp up production when its EV factory in Normal, Illinois, adds the R2 electric pickup truck to its production roster. The facility currently produces Rivian’s R1 SUV and its electric vans. Production of the R2 is slated to begin next year.
The new facility will be located right across Highway 150 from the main factory. Rivian already has plans in the works to build a connecting tunnel under the highway, helping to relieve local traffic related to the supplier park while speeding up the transit of parts from one facility to the other.
“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,” explained Rivian founder and CEO RJ Scaringe in a press statement.
“A subset of Rivian’s suppliers are expected to perform light assembly and manufacturing on site at the supplier park. Rivian employees at the supplier park will kit and sequence the parts, which will then be moved to the main plant,” the company adds.
The new supplier park is no small potatoes. Once complete, the facility will contain about 1.2 million square feet, enough to support multiple suppliers and hundreds of new jobs.
Rivian is not letting the grass grow under its feet, either. Construction is already underway, towards completion next year.
The EV Sales Ripple Effect
The supplier park enables Illinois to stake out a claim for itself as an up-and-coming EV manufacturing hub, which explains why state officials were willing to fork over $16 million in incentives to support construction of the new facility.
It’s not just about EV sales. State elected officials are also anticipating that Rivian will anchor the Normal area as an EV innovation hub. “Normal is quickly becoming one of Illinois’ top centers of innovation, and Rivian’s expansion takes us to the next level — building a premier hub for advanced manufacturing and opportunity,” enthuses Illinois state Representative Sharon Chung (D-Bloomington).
“In Illinois, we aren’t just making electric vehicles: we are creating an entire ecosystem – attracting investments, bolstering our workforce, and strengthening the EV manufacturing supply chain,” emphasized Governor JB Pritzker in a press statement.
“Rivian’s investment will attract suppliers from across the globe to invest in Illinois and continue to create good-paying jobs, providing Illinois with the competitive edge to thrive in the clean energy economy,” he added.
What Makes Rivian So Sure?
As with other automotive startups, Rivian has gone through its share of ups and downs. Among the downs currently facing the company is Trump’s chaotic tariff policy, which is wracking nerves all across the US auto industry. Although the R2 probably won’t face much competition, if any, from the Tesla Cybertruck, Rivian will be going up against other competitors, including the forthcoming electric pickup truck from the newly hatched startup Slate.
On the bright side, Rivian can probably count on the Tesla effect to boost its own bottom line. Tesla CEO Elon Musk was instrumental in cultivating an affinity for EVs among the US car-buying public. Now the Tesla brand is in crisis, but the affinity for EVs remains, and Rivian is not the only automaker to pounce on the newly opened EV sales opportunities.
For Rivian, those opportunities include commercial vans. Rivian had an exclusive electric van deal with Amazon up until earlier this year, when the exclusionary period ended. Now Rivian is free to market its van to fleet owners who are eager to suck up all the benefits that come with electric mobility.
EV Charging Solutions For Fleet Electrification
Fleet owners have become an important part of the EV sales picture, a trend that is likely to pick up steam alongside the emergence of new depot management systems. Last month, for example, the EV charging startup AmpUp and the EV firm Roundtrip EV Solutions launched a new management system for depot-based fleet electrification.
The system, which is specific to the waste management industry, is designed to reduce if not eliminate unplanned downtime related to charger outages. “Charger outages can’t interrupt municipal and private fleets and refuse pickups; trucks must be ready to roll daily,” explains AmpUp co-founder and CEO Tom Sun. “In this industry, reliability is paramount—downtime is simply not an option.”
Solutions are also emerging for fleet managers without their own charging depots. AmpUp has launched a partnership with the firm Curo aimed at providing fleet managers with a sort of virtual EV charging depot comprised of a network of host stations.
Other non-depot solutions are also emerging for fleet managers that enable drivers to park at home when their shift ends. Siemens, for example, has just launched a new accounting system that streamlines the reimbursement pipeline for fleet drivers who recharge the company EV at home.
In addition to supporting EV sales in the fleet market, Siemens’s reimbursement solution could also encourage EV-curious households to invest in a home EV charging station and buy an EV of their own.
Stealing EV Customers From Tesla
As for competing against Tesla for EV sales, that would seem to be a tough row to hoe by the numbers. After all, despite Tesla’s steep sales decline in recent months, it is still the top-selling EV maker in the US.
Or, not for long. Tesla still dominates the road in my neck of the woods, but nowadays it’s commonplace to spot a Rivian along with the occasional Polestar, and Tesla’s brand crisis is not the only reason. Back in February, CleanTechnica editor Zach Shahan buttonholed a former Tesla owner who switched to Rivian and came up with some insights into the future.
“The main reason for making the switch seemed to be a very common one — Rivians are just much nicer and more refined, particularly the interior,” wrote Shahan, also taking note of the quality of the drive. Cost-competitiveness also factored into the switch for this particular Rivian owner.
Any Rivian owners out there with some insights? Share your thoughts in the comment thread.
Photo (cropped): Rivian is among the US automakers planning ahead for new EV sales opportunities, even amidst the chaos of the Trump tariffs and other obstacles (courtesy of Rivian).
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