Rivian's Georgia plant wins approval for $6.6B loan

The funds breathe new life into the company's postponed facility, but challenges remain. (3 min. read)

Author

Colin Velez
November 27, 2024

Rivan has won approval for a $6.6 billion loan from the Department of Energy, allowing it to continue building its postponed Georgia electric vehicle plant.

Driving the news: Rivan initially put its plans to build the Stanton Springs facility on hold earlier this year over struggling sales, deciding to focus its attention on its current factory in Normal, Illinois. The Georgia site was originally announced three years ago, at which point Rivian anticipated a 2024 launch date.

  • The massive new loan will allow the company to resume construction with two phases planned, the first of which will wrap up in 2028.

  • Once completed, the plant will build the R2 and R3, with an initial production capacity of around 200,000 EVs annually. While Rivian had planned to build the R2 in Georgia from the start, it was forced to change plans due to financial pressures, moving production to its Illinois facility instead.

  • The final round of upgrades will boost production capacity to a total of 400,000 units per year.

Zooming in: Whether Rivian actually receives the funds it was promised remains uncertain.

  • The Department of Energy has only awarded preliminary approval for the $6.6 billion loan. Should Rivian fail to meet the conditions of its agreement, it could lose access to the money.

  • The timing is also unfortunate for the brand, as a new administration is set to take office in the coming months. While there is speculation that Donald Trump’s relationship with Tesla CEO Elon Musk will soften the President-elect’s views on electrification, it’s possible that Rivian’s loan will be canceled given his rhetoric against EVs on the campaign trail.

Looking ahead: Assuming things work in Rivian’s favor, the factory is expected to create nearly 10,000 jobs in construction and manufacturing. The Department of Energy estimates the plant would also lower American fuel consumption by roughly 146 million gallons per year once it hits the upper limits of its production capacity.

Bottom line: While there is still a chance that Rivian’s lifeline could be cut by the next administration, the new funds are likely to restore confidence in the brand’s future.

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