ater this Monday, Rivian secured a commitment for a $6.6 billion loan that comes from the Department of Energy, the funds are here to help the EV maker
restore the construction of one of the biggest factories in Georgia.
The funds that are expected will come from the DOE’s Loan Programs Office Advanced Technology Vehicle Manufacturing Lona Program. Even more so, Rivian said that they are expected to begin their operations at their new facility in Georgia in 2028, which is four years later than they first programmed to.
This new facility will be the palace for 7,500 employees by the end of 2030 and is backed up by an incentive program that was approved years ago by The Department of Economic Development, according to TechCrunch.
In December 2021, Rivian announced that the theory is planning to build another facility east of Atlanta that the company talked about growing and eventually doubling the annual production capacity of its plant in Norma, Illinois. Their estimated cost of production is about $5 billion.
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Even more so, at that time the EV manufacturer said that their factory in 2021 would have targeted an annual production capacity of 400,000 EVs a year, looking forward to starting production in 2024. Yet, according to the state’s Department of Economic Development, the company received a $1.5 billion incentive package to build its factory in Georgia.
Due to its unfortunate cash flow, Rivian paused constructing the factory and changed its plan for building its next-generation R2 midsize SUV there. However, Rivian announced in March 2024 at their R2 reveal that their new EV would be produced in Illinois. This shift saved the company $2.25 billion.
Yet, with the federal loans program that has backed several EV-related initiatives, including $465 million for Tesla in 2009, a $9.2 conditional commitment for Ford-SK in June, and a $2 billion loan for Redwood Materials for expanding their Nevada HQ.
By
Eva Robinson
•
November 26, 2024 3:10 PM
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