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Rivian has finally finalized a massive $6.6 billion loan with the Department of Energy to fund the construction of its new electric vehicle manufacturing facility in Georgia. The agreement was announced in November and has now been completed, clearing the way for Rivian to begin building out its planned factory east of Atlanta.
The loan comes from the Advanced Technology Vehicle Manufacturing (ATVM) program, which is part of the DOE’s Loan Programs Office. This program is perhaps best known for providing a $465 million lifeline to Tesla in 2009.
Rivian will use the funds to fund two stages of buildout at its Georgia facility. The company can borrow up to $3.35 billion in the first tranche and up to $2.62 billion in the second tranche, with the remaining $600 million going towards eliminating interest on the loan. Rivian has 52 months to draw down funds under the agreement.
In order to access the funds, Rivian must meet certain conditions outlined in the loan agreement. The company must sell a minimum number of its upcoming R2 SUVs produced at its Normal, Illinois factory, as well as hit specific product design milestones on the R2 and R3 hatchback.
Rivian initially announced plans for the Georgia facility in December 2021, just weeks after going public with an initial public offering (IPO). At the time, the company claimed it would begin production at the plant in 2024. However, last year Rivian decided to pause construction on the factory and instead opt to build the R2 SUV in Illinois.
But now, with the $6.6 billion loan in place, Rivian is revising its plans to start building the facility in 2026, with the first R2 SUVs expected to roll off the production line by 2028.
The Georgia factory will be used to produce electric vehicles and battery systems for both domestic and international markets.
Source: techcrunch.com
