CompaniesRivian Automotive Inc May 5 (Reuters) - Rivian (RIVN.O), opens new tab said on Monday it would invest $120 million to build a supplier park near its plant in Illinois, as the electric vehicle-maker gears up to produce its smaller, more affordable R2 SUVs next year. The supplier park near Rivian's facility at Normal, Illinois will reduce shipping, logistics and warehousing costs, while adding hundreds of jobs in the next two years, including about 100 directly by the company, it said. Advertisement · Scroll to continue Rivian builds all its EVs at the Normal plant, including its flagship R1S SUVs and R1T pickup trucks. "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," CEO RJ Scaringe said in a blog. Some Rivian suppliers will manufacture and assemble some parts at the park, which is under construction, Rivian said. Rivian employees will then kit and sequence the parts that will be moved to the main plant through an underground tunnel. To conserve cash and hasten the production of R2 - seen critical to the company's success amid a slowdown in EV growth - Rivian paused construction of a plant in Georgia last year and decided to start building R2 at Normal. Advertisement · Scroll to continue The company plans to eventually build the R2 SUVs, as well as its R3 crossovers at the Georgia plant from 2028. In April, Rivian reported a 36% decline in first-quarter deliveries. CFO Claire McDonough had said in February that vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles. The company is set to report first-quarter earnings on Tuesday. Rivian's investment in the supplier park coincides with the ongoing challenge automakers face due to tariffs imposed by U.S. President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles. Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV580779 About ConnatixV580779 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE While Rivian makes its vehicles in the U.S., it imports many of its parts from abroad. Reporting by Juby Babu in Mexico City and Abhirup Roy in San Francisco; Editing by Leroy Leo and Mohammed Safi Shamsi Purchase Licensing Rights