Energy Department provides Rivian with a $6.6 billion loan
Rivian Secures $6.6 Billion Loan for Georgia EV Plant Resumption
Rivian Automotive, an American electric vehicle (EV) manufacturer, has received final approval for a $6.6 billion loan from the Department of Energy (DOE). This loan will aid in resuming construction of Rivian's Georgia EV plant, which was halted in March, and help the company scale its domestic EV production.
The loan comes from the DOE's Advanced Technology Vehicle Manufacturing Loan Program. This funding will fast track Rivian's plan to scale domestic EV production, supporting the manufacturing of its R2 and R3/R3X vehicles.
Rivian's Georgia factory plan consists of two phases. Phase one is expected to start production in 2028, with an annual capacity of 200,000 units. Upon completion, the factory will contribute to the creation of 7,500 jobs through 2030. The annual production capacity of the factory, once phase one is complete, will be 400,000 units, double that of phase one.
However, the company did not disclose when phase two of the project in Georgia would be completed. The press release from Rivian did not provide details on the timeline for the completion of phase two of the Georgia project.
Rivian's founder and CEO, RJ Scaringe, stated that the loan will help create thousands of new American jobs. He also mentioned that the loan would enable Rivian to more aggressively scale its U.S. manufacturing footprint. Scaringe further stated that the loan would further strengthen U.S. leadership in EV manufacturing and technology.
In addition to the Georgia factory, Rivian will continue producing vehicles in Normal, Illinois. The company shifted R2 production to its plant in Normal, Illinois to get the vehicle to market faster, with the first models expected to roll off the assembly line in the first half of 2026.
Rivian and Volkswagen Group recently launched a joint venture to develop electrical/electronic architecture and software for electric vehicles. This collaboration is expected to drive innovation and efficiency in the EV industry.
The conditional commitment for the loan indicates the government's intent to finance the project, but certain conditions must still be met before the loan is funded. Funding will be available through September 2028.
The first phase of the Rivian automotive factory construction project in Georgia began in early 2022. The loan is a significant step towards resuming construction and completing the project, which will play a crucial role in Rivian's expansion and the growth of the EV industry in the United States.
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