Rivian secures $6.6 billion loan for Georgia EV factory
Rivian plans to produce its R2 and R3 models that will be sold at a “significantly lower price point” than its flagship R1 vehicle, the company said.
The US government has approved a USD 6.6 billion loan to Rivian Automotive to build a factory in Georgia that had been stalled as the EV maker struggled to make a profit.
However, it is not clear if the loan formalities can be completed before Donald Trump takes charge as president. Rivian said it “must satisfy certain technical, legal, environmental, and financial conditions” before the US Department of Energy (DOE) gives final approval for the loan.
The incoming administration is expected to take a harder line on green initiatives and EV manufacturing.
Trump has previously pledged to end federal EV tax credits worth up to $7,500 for new zero-emission vehicles and $4,000 for used ones.
The first phase of the Georgia facility is projected to make 200,000 vehicles a year, according to a report by Associated Press. Eventually, the factory is projected to employ 7,500 workers.
Rivian plans to produce its R2 and R3 models that will be sold at a “significantly lower price point” than its flagship R1 vehicle, the company said.
The DOE said the loan would substantially boost electric vehicles made in the US and help Biden’s goal of having zero-emission vehicles make up half of all new American sales by the end of the decade.
“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 Department of Energy said.
The loan includes USD 6 billion, plus USD 600 million in interest that will be rolled into the principal. The money would come from the Advanced Technology Vehicles Manufacturing Loan Program, which provides low-interest loans to make fuel-efficient vehicles and components, the AP report said.
“This loan will help create thousands of new American jobs and further strengthen US leadership in EV manufacturing and technology,” Rivian founder and CEO RJ Scaringe said in a written statement.
