Rivian gets $6.6 billion conditional loan from Department of Energy

Rivian gets $6.6 billion conditional loan from Department of Energy

Rivian Automotive has received a $6.6 billion conditional loan commitment from the Department of Energy, which will help the company get its stalled electric vehicle factory project in Georgia back on track, the company announced Monday.

The funds, through the DOE’s Advanced Technology Vehicle Manufacturing Loan Program, would help the company resume construction of its $5 billion electric vehicle plant in Georgia, which was halted in March. The release did not disclose a timeline for when the loan would be finalized, although the DOE website notes that funding will be available through September 2028.

“This loan would allow Rivian to more aggressively expand our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian founder and CEO R.J. said in the release. Scaringe.

Rivian halted construction of its electric vehicle plant in Georgia to save more than $2.25 billion. The company then moved production of the R2 to its plant in Normal, Illinois, to get the vehicle to market more quickly, where the first models are expected to roll off the assembly line in the first half of 2026.

The loan announcement follows the launch of a joint venture between Rivian and Volkswagen Group. Through the partnership, the automakers will develop electrical/electronic architecture and software for electric vehicles that will be shared and used in vehicles made by each company.

While the conditional commitment indicates intent to finance the project, certain technical, legal, environmental and financial conditions still need to be met before the government will fund the loan, the company said.

But the government’s cash infusion accelerates Rivian’s plan to scale domestic electric vehicle production to support production of its R2, a midsize SUV, and R3/R3X, a midsize crossover.

Rivian said its plan for the Georgia factory consists of two phases. The first phase of the project is expected to begin production in 2028 with an annual capacity of 200,000 units, the company said. The company did not reveal when phase two of the project will be completed.

Once the factory is finished, its annual production capacity in Georgia will double to 400,000 units, according to the press release. Rivian expects the operation to create 7,500 jobs by 2030.

Rivian will continue to produce vehicles in Normal even after it starts production in Georgia, the company said.

“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in electric vehicle manufacturing and technology,” Scaringe said.

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