Rivian secures $6.6 billion government loan to boost EV expansion

The news: EV-maker Rivian announced conditional approval for a $6.6 billion loan from the US Department of Energy’s Advanced Technology Vehicles Manufacturing program. 

• The loan will fund a new EV plant in Georgia, scheduled to start operations in 2028.
• The funding gives Rivian greater latitude in accelerating EV production without having to deplete its own cash reserves. 
• Rivian must meet environmental, financial, and legal conditions before the loan is finalized.

The company paused Georgia plant construction earlier this year to conserve cash and prioritize production at its Illinois facility. 

Getting Rivian’s expansion up and running: “This loan will help create thousands of new American jobs and further strengthen US leadership in EV manufacturing and technology,” said Rivian founder RJ Scaringe.

• The company will use the Georgia facility to build R2 SUVs and R3 crossovers, crucial to the company’s strategy of offering affordable, mass-market EVs.
• The plant is expected to employ 7,500 workers by 2030 and produce 400,000 EVs annually.
• A recent $5 billion joint venture with Volkswagen positioned Rivian and its technology as valuable assets to one of the world’s leading automakers.

Getting ahead of potential hurdles: The Biden administration is rushing to fund various initiatives—this week, Intel received $7.9 billion in federal grants from the CHIPS Act, the largest subsidy to boost domestic semiconductors.

• Like many EV makers, Rivian is facing uncertainty from president-elect Donald Trump’s potential rollback of EV tax credits, which could undermine Rivian’s pricing strategy.
• Even with the availability of tax credits, EV demand is lagging, resulting in layoffs and restructuring.

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