Electric Vehicle Manufacturer Seeks Federal Loan for Georgia Factory Expansion
Rivian Automotive, a leading electric vehicle (EV) manufacturer, has submitted an application for a federal loan to support the construction of its forthcoming EV factory in Georgia. According to a recent filing by the U.S. Department of Energy, the loan would facilitate the development of the facility, which is slated to begin partial operations in the third quarter of 2027. The first production capacity block is expected to reach full operation by 2028.
Although Rivian has applied for the loan, the Department of Energy has yet to make a final decision, and the terms and amount of the loan remain undisclosed. The EV maker has not provided comment on the matter.
In recent months, Rivian has been prioritizing the acceleration of vehicle production on its R2 midsize platform and conserving cash. To achieve this, the company has temporarily paused construction on its $5 billion Georgia factory and shifted production of its R2 midsize SUV to its Illinois facility, where it also manufactures electric delivery vans for Amazon.com. This strategic move aims to save $2.25 billion and expedite production.
Rivian has received significant support from the State of Illinois, securing an $827 million incentive package to expand operations at its Normal facility. Additionally, the company received $1.5 billion in state and local incentives for the Georgia facility in 2022.
Despite facing challenges, including a parts shortage and slowing EV demand, Rivian remains committed to its growth strategy. The company’s recent financial reports indicate it had $5.76 billion in cash and cash equivalents, along with a long-term debt of $5.53 billion, as of June. Furthermore, Rivian has secured a $5 billion investment from German automaker Volkswagen as part of a joint venture to share EV architecture and software.
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