Rivian receives conditional commitment for $6.6 billion loan to build Georgia R2 factory
Rivian has secured a conditional commitment for a $6.6 billion loan from the U.S. Department of Energy for the buildout of its planned Georgia factory. The announcement was made by the Biden administration on Tuesday.
Rivian’s Georgia plant is expected to be the key manufacturing site of the company’s mass market vehicle, the R2, which is expected to be priced at the same range as the best-selling Tesla Model Y, as well as the smaller and even more affordable R3 and R3X. While plans were underway to ramp the construction of the Georgia plant, Rivian noted in March that it was pausing the development of the facility, and that the R2’s initial production would be done in its Normal, Il plant instead.
With Rivian getting a conditional commitment for the DoE's $6.6 billion loan, the electric truck maker would be able to ramp the buildout of its Georgia plant. As noted in a report from the Associated Press, the first phase of Rivian’s Georgia factory is expected to make 200,000 vehicles per year, while the second phase should unlock the capability to produce another 200,000 per year. Expectations are high that the facility will employ 7,500 workers.
Today, we received conditional commitment from the U.S. Department of @ENERGY's Loan Programs Office for up to $6.6 billion to support the construction of our next-generation manufacturing facility in Stanton Springs North, Georgia. We expect this landmark facility to support at… pic.twitter.com/zKvqa59c1E
— Rivian (@Rivian) November 26, 2024
Rivian CEO RJ Scaringe noted that the loan should allow the company to start selling the R2 sooner. The executive also noted that the loan should also save Rivian $2.25 billion in capital spending. With funding effectively secured, Rivian’s plans to produce the R2 and the R3 in Georgia are back on, and production is expected to start in 2028.
“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology. This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability. A robust ecosystem of U.S. companies developing and manufacturing EVs is critical for the U.S. to maintain its long-term leadership in transportation,” Scaringe stated in a press release.
The U.S. Department of Energy, for its part, stated that the loan would significantly boost the country’s electric vehicle output. “As one of a few American EV startups with light duty vehicles already on the road, Rivian’s Georgia facility will allow the company to reach production volumes that make its products more cost competitive and accelerate access to international markets,” the U.S. DoE noted.
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