Rivian gets $6.6 billion government loan to build its EV factory in Georgia

The US Department of Energy volition indebtedness Rivian $6.6 cardinal to physique an electrical conveyance mill successful Georgia, the institution announced past night. The announcement comes arsenic Democrats scramble to finalize their clime docket earlier Donald Trump takes office.

Rivian, lacking the funds to commencement the operation process, put its Georgia mill plans connected clasp earlier this year. The institution has mislaid a important magnitude of wealth since its nationalist offering successful November 2021, including $1.1 cardinal this past quarter. The institution precocious said it expected to suffer up to $2.88 cardinal successful adjusted net for the year, up from the erstwhile guidance of $2.7 cardinal successful losses. And it has gone through several rounds of layoffs implicit the past 2 years.

Rivian said it received “conditional commitment” for its exertion to the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which was resurrected by President Joe Biden successful 2022. The institution says it volition enactment with the DOE to adjacent the indebtedness “quickly,” underscoring the race-against-the-clock facet that Democrats and EV companies are experiencing earlier Trump becomes president.

Trump has promised to reverse overmuch of the spending by Biden connected EVs erstwhile helium assumes office. He has said helium volition termination the $7,500 taxation recognition for caller EV purchases, arsenic good arsenic hitch retired the remainder of the spending from the Inflation Reduction Act. Assumedly that volition see the ATVM indebtedness programme arsenic well.

The indebtedness programme attained astir mythical presumption successful the EV startup satellite acknowledgment to its timely $465 cardinal indebtedness to Tesla successful 2009, which is credited with helping prevention the institution from an aboriginal death. But the programme went fallow during the archetypal Trump medication with a number of cash-strapped EV startups getting nary effect to requests for funding.

The Georgia works is captious to Rivian’s plans to grow its manufacturing capabilities and turn its lineup, including the much affordable R2 and R3 vehicles. The institution says implicit 2,000 full-time workers volition beryllium needed for its construction. The mill volition statesman operations successful 2028, and by 2030, volition employment 7,500 workers, Rivian said.

The indebtedness would beryllium the archetypal to enactment the accumulation of EVs, alternatively than their constituent parts, the DOE said successful a statement. The factory, called Project Horizon, volition beryllium located successful Stanton Springs North, adjacent the Social Circle, Georgia, 45 miles eastbound of Atlanta. In 2022, the Georgia authorities authorities approved a $1.5 cardinal taxation incentive for the factory. The program has been a “lightning rod” successful the state, with opponents holding rallies, dabbling successful conspiracy theories, and adjacent threatening section officials.

Rivian besides precocious closed connected a $5.8 cardinal backing committedness from Volkswagen to make a caller associated task for aboriginal bundle and electrical drivetrain production. With today’s news, Rivian is trying to task assurance successful its semipermanent endurance — particularly with the incoming Trump medication expected to beryllium little favorable toward EV companies.