Rivian will get $6.6 billion authorities mortgage to construct its EV manufacturing unit in Georgia

The US Division of Power will mortgage Rivian $6.6 billion to construct an electrical car manufacturing unit in Georgia, as Democrats scramble to finalize their local weather agenda earlier than Donald Trump takes workplace.

Rivian, missing the funds to start out the development course of, put its Georgia manufacturing unit plans on maintain earlier this yr. The corporate has misplaced a major amount of cash since its public providing in November 2021, together with $1.1 billion this previous quarter. The corporate just lately stated it anticipated to lose as much as $2.88 billion in adjusted earnings for the yr, up from the earlier steerage of $2.7 billion in losses. And it has gone by way of a number of rounds of layoffs over the previous two years.

Rivian stated it obtained “conditional dedication” for its utility to the Superior Expertise Automobiles Manufacturing (ATVM) Mortgage Program, which was resurrected by President Joe Biden in 2022. The corporate says it would work with the DOE to shut the mortgage “shortly,” underscoring the race-against-the-clock facet that Democrats and EV corporations are experiencing earlier than Trump turns into president.

Trump has promised to reverse a lot of the spending by Biden on EVs as soon as he assumes workplace. He has stated he’ll kill the $7,500 tax credit score for brand spanking new EV purchases, in addition to wipe out the remainder of the spending from the Inflation Discount Act. Assumedly that may embrace the ATVM mortgage program as effectively.

The mortgage program attained nearly legendary standing within the EV startup world due to its well timed $465 million mortgage to Tesla in 2009, which is credited with serving to save the corporate from an early demise. However this system went fallow throughout the first Trump administration with a quantity of cash-strapped EV startups getting no response to requests for funding.

The Georgia plant is crucial to Rivian’s plans to broaden its manufacturing capabilities and develop its lineup, together with the extra inexpensive R2 and R3 automobiles. The corporate says over 2,000 full-time staff will likely be wanted for its building. The manufacturing unit will start operations in 2028, and by 2030, will make use of 7,500 staff, Rivian stated.

The mortgage can be the primary to help the manufacturing of EVs, relatively than their part components, the DOE stated in an announcement. The manufacturing unit, referred to as Venture Horizon, will likely be positioned in Stanton Springs North, close to the Social Circle, Georgia, 45 miles east of Atlanta. In 2022, the Georgia state authorities permitted a $1.5 billion tax incentive for the manufacturing unit. The plan has been a “lightning rod” within the state, with opponents holding rallies, dabbling in conspiracy theories, and even threatening native officers.

Rivian additionally just lately closed on a $5.8 billion funding dedication from Volkswagen to create a brand new three way partnership for future software program and electrical drivetrain manufacturing. With right now’s information, Rivian is attempting to undertaking confidence in its long-term survival — particularly with the incoming Trump administration anticipated to be much less favorable towards EV corporations.