Rivian shares jump 4% on whopping $6.6 billion loan for Georgia EV plant

Electric vehicle manufacturer Rivian Automotive has finalized a $6.6 billion loan agreement with the U.S. Department of Energy (DOE) to support the development of its upcoming manufacturing facility in Georgia. This milestone is set to bolster Rivian’s expansion efforts as it plans to launch its R2 SUV and R3 crossover models.

The planned facility, located near Social Circle, Georgia, will commence construction in 2026, with vehicle production anticipated to begin in 2028. Rivian estimates that the project will create approximately 7,500 jobs, emphasizing its commitment to local economic growth and American leadership in electric vehicle innovation.

“This loan will help us accelerate the launch of our Georgia plant for R2 and R3, providing thousands of jobs in the state,” said Rivian Founder and CEO RJ Scaringe. “People are incredibly excited to get behind the wheel of our new models, and this additional capacity for our mass market products is key to U.S. leadership in the electric vehicle industry.”

The loan, administered through the DOE’s Loan Programs Office, is structured into two phases: $3.4 billion for the initial stage and $2.6 billion for the second. These funds are earmarked for facility construction and operational setup, ensuring Rivian’s ability to meet rising EV demand.

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Strategically located less than an hour from Atlanta, the plant will employ sustainable construction methods and advanced environmental management systems. Rivian also plans to preserve nearby natural areas while fostering community investment. The company has already begun hiring for management and construction roles, with recruitment efforts set to intensify as the project advances.

This agreement highlights the Biden administration’s push to strengthen the U.S. EV industry as part of its broader green energy agenda. The DOE’s loan program, which played a pivotal role in Rivian’s funding, has been central to financing clean energy projects under the administration.

The loan will be split across two phases of Rivian’s Georgia facility. Excluding capitalized interest, the first phase is expected to have a loan size up to $3.4B and the second phase up to $2.6B. A summary of key terms can be found here. Advances under the loan are subject to the accuracy of certain representations and warranties, compliance with covenants and other conditions precedents.

-Rivian

The finalized loan arrives at a time of evolving political dynamics, with potential changes to the DOE’s Loan Programs Office under future administrations. Nonetheless, Rivian’s expansion reflects its strategic vision to compete in the electric vehicle market while driving forward the nation’s clean energy objectives.

Rivian shares rose nearly 4% following the announcement, outperforming a general market dip, signaling investor confidence in the company’s long-term growth prospects.

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Featured image credit: Rivian