- U.S. electric off-roader manufacturer, Rivian, has announced a conditional loan worth up to $6.6 billion, committed to by the U.S. Department of Energy.
- The loan is designed to accelerate the growth of EV design, development, and manufacturing within the United States specifically.
- This loan will help support Rivian in the construction of a new EV plant, set to be built in the U.S. state of Georgia.
Rivian’s ambitions supercharged with new loan
The Georgia-based EV production site that will be possible under this loan is expected to be built in two phases. The first, which will begin production in 2028, is expected to create an annual EV production capacity of 200,000 units. A second construction phase will follow, upping that annual production capacity to 400,000 units. For context, Rivian’s production facility in Normal, Illinois has an annual production capacity of around 215,000 units, highlighting the significance of this new site. Upon completion, the site is expected to create around 7,500 operations jobs.
In addition to supporting the construction of this new Georgia-based EV production site, the loan will provide Rivian with crucial funding to deliver on its new, more compact electric SUV range: consisting of the R2, R3, and R3X. We’re expecting a European launch of these relatively smaller EVs in the near future, so this extra capacity from a Georgia facility will be crucial for a global expansion of Rivian.
The U.S. Department of Energy has already been heavily committed to encouraging the growth of the EV industry. It recently granted a $475 million loan to U.S. EV battery recycling firm, Li-Cycle, whilst it has previously committed loans to OEMs such as GM and Tesla.
Rivian Founder and CEO, RJ Scaringe, commented:
“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology. This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability. A robust ecosystem of U.S. companies developing and manufacturing EVs is critical for the U.S. to maintain its long-term leadership in transportation.”
