The electric vehicle maker Rivian has just finalized a robust $6.6 billion loan, issued by the Department of Energy (DOE). This fund aims to bolster the construction of Rivian’s cutting-edge factory earmarked for Georgia.
The highly anticipated manufacturing plant, based east of Atlanta, is projected to commence construction in 2026. The first crop of the R2 SUVs is expected to roll out in 2028. This loan originates from the DOE’s Advanced Technology Vehicle Manufacturing (ATVM) program, notorious for extending a $465 million lifeline to Tesla in 2009.
Not without some controversy, this substantial loan has drawn the ire of Vivek Ramaswamy, who alleges dubious intentions, although no concrete plan has been put forth.
The loan, delivered in two installments, will be used to fund the two major stages of the Georgia factory’s development. Rivian is permitted to borrow up to $3.35 billion and $2.62 billion in the first and second tranche, respectively.
As per the loan agreement with the DOE, Rivian has 52 months to withdraw the money. However, it comes with several stipulations – chief among them, the company must adhere to specific sales and design milestones for their upcoming R2 and R3 models.
Announced in December 2021 after a grandiose IPO, the Georgia plant was initially set to start production in 2024. However, after a cost analysis, production was halted and moved to Illinois. With the fresh funds from the DOE loan, Rivian is confidently eyeing the commencement of production four years later than initially planned.
Original source: Read the full article on TechCrunch
