Rivian may receive a $6.6 billion loan from the state to open its plant in Georgia
American EV maker Rivian recently announced that it is coming from the US Department of Energy (DOE) with a loan of up to $6.6 billion. This is thanks to the DOE’s Advanced Vehicle Manufacturing (ATVM) Loan Program. This includes $6 billion in loans and approximately $600 million in interest.
The company says it will use the money to “accelerate its growth and leadership in electric vehicle design, development and manufacturing in the United States.” Rivian fans can guess what that means. The Georgia manufacturing plant is back on the table, after the company returned in March.
When completed, the loan will support the ongoing construction of its manufacturing facility near Social Circle, Georgia. The facility will be used to “produce the company’s mid-range platform,” including the upcoming R2 SUV and the .
“Designed, engineered and built in America to deliver an outstanding combination of capabilities, performance, performance, and pricing, Rivian believes its R2 and R3 vehicle lines will have a significant impact on the company’s long-term growth and profitability,” the company wrote. in a press release.
Rivian says this will bring an estimated 7,500 jobs to the area, as well as 2,000 construction jobs. The facility will be able to build 400,000 vehicles each year, which will support Rivian’s continued expansion in America and foreign markets. The current plan is that the facility will be built in two phases, with the first phase (for 200,000 vehicles per year) starting in 2028.
This will not affect production at the company’s current plant in Normal, Illinois. But, that’s the center, so maybe we can slow things down a bit.
We have been overwhelmed by the overwhelming response to our new vehicles: R2, R3 and R3X.
In less than 24 hours, we took over R2 68,000 in bookings. We’re excited to see this car resonate so much with our community! pic.twitter.com/tEIBhwlJQC
– RJ Scaringe (@RJScaringe) March 8, 2024
The loan has not been fully finalized yet, as “DOE and the company must satisfy certain technical, legal, environmental and financial conditions before the Department of Energy can enter into definitive financial documents and finance the loan.” The ATVM Loan Program is very popular in the EV space, having been popular since 2010. Thanks to that loan, Tesla can continue to build the internet’s favorite punching bag, , and a bunch of . No wonder Rivian numbers are pre-ordering.
