Rivian Automotive is on track for a U.S. Dept. of Energy loan of up to $6.6 billion that the EV manufacturer said would support construction of its second manufacturing plant. Rivian put that Stanton Springs North, Ga., project on hold in March, stating it needed to conserve cash while still affirming its commitment to adding capacity and introducing new electric vehicles.
“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,” stated CEO RJ Scaringe.
After it paused the Georgia project, Rivian accepted an $827-million incentive package to expand its current plant in Normal, Ill., where it produces the R1T pickup and R1S sport-utility vehicle. The automaker indicated it would produce the new R2 midsize eSUV there in order to meet its production strategy.
The DOE’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program is meant to support “next-generation U.S. energy infrastructure and advanced vehicle technologies, … de-risking them at early stages of commercialization so they can reach full market acceptance.” The loans have been accessed in the past by Tesla and General Motors for their own EV programs.
The ATVM loan offer is conditional, based on terms negotiated between DOE and Rivian that must be satisfied prior to funding. Those terms may be reviewed by the incoming Trump administration if the loan is not issued before it assumes office in January 2025.
President-elect Trump has opposed federal tax credits for electric vehicle purchases.
The Georgia plant would manufacture the Rivian R2 at a rate of 200,000 units per year. Rivian now says that production would begin in 2028.
A second phase of construction would double that output and add production of the R3 eSUV and the R3X crossover electric vehicle.
Rivian forecasts that the new plant would generate 7,500 jobs by 2030.
