American EV maker Rivian just announced that it has received a commitment from the US Department of Energy (DOE) for a loan totaling $6.6 billion. This is thanks to the DOE’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program. This includes a principal loan of $6 billion and approximately $600 million of capitalized interest.
The company says it will use this money to “to accelerate its growth and leadership of electric vehicle design, development and manufacturing in the United States.” Rivian fans can guess what that means. The Georgia manufacturing plant is back on the table, after the company halted construction to save money back in March.
If finalized, the loan will support continued construction of its manufacturing facility near Social Circle, Georgia. This plant will be used “for production of the company’s midsize platform,” which includes the forthcoming R2 SUV and the absolutely stunning R3/R3X line.
“Designed, engineered, and built in America to deliver an incredible combination of capability, function, performance, and pricing, Rivian believes its R2 and R3 vehicle lines will be critical drivers in the company’s long-term growth and profitability,” the company wrote in a press release.
Rivian says this will bring around 7,500 operational jobs to the area, along with 2,000 construction jobs. The plant will be able to build 400,000 vehicles each year, which will support Rivian’s continuing expansion both in America and in foreign markets. The current plan is for the facility to be built in two phases, with phase one (accounting for 200,000 vehicles per year) going live in 2028.
This will not impact the manufacturing output of the company’s current plant in Normal, Illinois. However, that facility is reportedly not the safest place to work, so maybe it could stand to slow things down a bit.
Overwhelmed by the wonderful response to our new vehicles: R2, R3 and R3X.
In less than 24 hours, we’ve taken more than 68,000 R2 reservations. We are thrilled to see this vehicle resonate so strongly with our community! pic.twitter.com/tEIBhwlJQC
— RJ Scaringe (@RJScaringe) March 8, 2024
The loan hasn’t been fully finalized yet, as the “DOE and the company must satisfy certain technical, legal, environmental and financial conditions before the Department of Energy enters into definitive financing documents and funds the loan.” The ATVM Loan Program is quite renowned in the EV space, as it is largely credited for saving Tesla from an early death all the way back in 2010. Thanks to that loan, Tesla can continue to create the internet’s favorite punching bag, the Cybertruck, and a bunch of robots that don’t actually do anything. No wonder Rivian has been posting outstanding preorder numbers.
Source: www.engadget.com