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

The US Department of Energy will indebtedness Rivian $6.6 cardinal to build an electrical conveyance mill successful Georgia, arsenic Democrats scramble to finalize their ambiance schedule earlier Donald Trump takes office.

Rivian, lacking the costs to commencement the building process, put its Georgia mill plans connected clasp earlier this year. The institution has mislaid a important magnitude of money 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 complete 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 will activity pinch 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 he assumes office. He has said he will termination the $7,500 taxation in installments for caller EV purchases, arsenic good arsenic swipe retired the remainder of the spending from the Inflation Reduction Act. Assumedly that will see the ATVM indebtedness programme arsenic well.

The indebtedness programme attained almost mythical position successful the EV startup world acknowledgment to its timely $465 cardinal indebtedness to Tesla successful 2009, which is credited pinch helping prevention the institution from an early death. But the programme went fallow during the first Trump management with a number of cash-strapped EV startups getting nary consequence 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 complete 2,000 full-time workers will beryllium needed for its construction. The mill will statesman operations successful 2028, and by 2030, will employment 7,500 workers, Rivian said.

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

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