Rivian gets $6B federal loan to resume work on stalled Ga. plant
ATLANTA, Ga. - The U.S. Department of Energy will make a $6.6 billion loan to Rivian Automotive to build a factory in Georgia that had stalled as the startup electric vehicle maker struggled to become profitable.
Rivian made a splash when it went public and began producing large electric R1 SUVs, pickup trucks and delivery vans at a former Mitsubishi factory in Normal, Illinois, in 2021.
Months later, the California-based company announced it would build a second, larger, $5 billion plant about 40 miles east of Atlanta.
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But Rivian was unable to meet production and sales targets and rapidly burned through cash. In March, the company said it would pause construction of the Georgia plant. The company said it would begin assembling its R2 SUV in Illinois instead.
The loan will go toward building the planned factory in Social Circle, according to U.S. Sen. Jon Ossoff’s office.
“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,” CEO RJ Scaringe said in a statement.
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Georgia state officials initially promised Rivian nearly $1.5 billion in tax breaks to build the factory in May 2022. The package included free land, a training center for workers and a new interchange along I-20. The property is also adjacent to major rail lines and will use reservoir water from the Newton County Water Authority.
Ossoff’s office said he had been pushing the Biden istration to approve the federal loan, which the Inflation Reduction Act will fund. The senator also wrote Energy Secretary Jennifer Granholm to advocate for the approval of Rivian’s application, his office said.
The loan from the DOE is conditional, meaning Rivian has to keep in compliance with a range of conditions that are written into law.
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One murky spot for Rivian — and indeed the entire EV industry — is the appetite of the incoming Trump istration to feed more electric vehicle production. Donald Trump, in past Georgia rallies, has been hesitant at best towards alternatives to combustion engine cars.
Trump previously vowed to end federal electric vehicle tax credits, which are worth up to $7,500 for new zero-emission vehicles and $4,000 for used ones.
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