Rivian, the American electric vehicle manufacturer, has received conditional approval for a loan of up to $6.6 billion from the U.S. Department of Energy. This funding will support the construction of a production facility in Georgia, set to begin operations in 2028. The Georgia plant aims to produce the future R2 SUV and R3 crossover, which are smaller and more affordable models.
Rivian's stock has dropped approximately 50% this year due to challenges in producing its spacious electric SUVs and trucks, coupled with parts shortages and cost-cutting efforts. To conserve cash and expedite R2 production, Rivian paused the Georgia facility's construction earlier this year. Instead, the company plans to start R2 production in 2026 at its Normal, Illinois plant, which currently manufactures the flagship R1S SUV and R1T trucks.
CEO RJ Scaringe stated that the loan will enable Rivian to expand its production scale in the U.S., focusing on competitively priced R2 and R3 vehicles that emphasize capability and affordability. The loan is part of the U.S. government's Advanced Technology Vehicles Manufacturing Loan Program, which has previously provided low-cost loans to automakers like Tesla, Ford, and General Motors.
The Georgia plant is projected to cost $5 billion, and Rivian expects to employ around 7,500 operational staff by 2030. Before the loan's final approval, Rivian must meet specific technical, legal, environmental, and financial conditions. The loan includes $6 billion in principal and $600 million in capitalized interest.
