Investing.com -- Electric vehicle manufacturer Rivian (NASDAQ: RIVN ) announced on Monday that it plans to invest $120 million to establish a supplier park near its plant in Normal, Illinois. The move is intended to bring its key parts suppliers closer to its production facility, a strategic step the company is taking to mitigate the effects of tariffs imposed by U.S. President Donald Trump on Mexico and Canada.

The creation of a supplier park in the vicinity of Rivian’s facility is expected to not only lower the impact of tariffs but also reduce shipping, logistics, and warehousing expenses. The initiative will also contribute to job creation in the region, with hundreds of positions set to open up in the coming two years. Rivian itself plans to directly employ about 100 individuals.

Rivian CEO, RJ Scaringe, indicated in a blog post that the supplier park will play a crucial role in ramping up production at the Illinois plant in 2026. The company’s plan includes the production of its R2 model, in addition to the existing R1 model and commercial vans.

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