The U.S. Department of Energy announced a $6.6 billion loan to Rivian Automotive to construct a factory in Georgia that had faced challenges due to the company’s profitability issues.
Rivian, known for its electric vehicles, initially paused construction of the Georgia plant after struggling to meet production and sales targets and burning through cash.
The big picture: The loan is intended to support Rivian’s plans to produce R2 and R3 vehicles in Georgia, with production set to commence in 2028.
- The funding is aimed at enhancing Rivian’s manufacturing capabilities and affordability of their vehicles, aligning with President Biden’s target to have zero-emission vehicles account for half of all new U.S. sales by 2030.
- The loan includes $6 billion, along with $600 million in interest, originating from the Advanced Technology Vehicles Manufacturing Loan Program that provides low-interest loans for fuel-efficient vehicles and components.
Driving the news: State and local governments in Georgia offered substantial incentives to Rivian, with opposition from neighbors leading to legal challenges against the development of the Georgia site.
- Efforts to attract Rivian to Georgia predated the Biden administration, and the initiative to boost electric vehicle manufacturing in the state remains a priority for Georgia Governor Brian Kemp.
