Rivian will get $6.6 billion authorities mortgage to construct its EV manufacturing facility in Georgia Leave a comment

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

Rivian, missing the funds to begin the development course of, put its Georgia manufacturing facility plans on maintain earlier this 12 months. The corporate has misplaced a big sum of money since its public providing in November 2021, together with $1.1 billion this previous quarter. The corporate just lately mentioned it anticipated to lose as much as $2.88 billion in adjusted earnings for the 12 months, 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 mentioned it obtained “conditional dedication” for its software to the Superior Know-how Autos Manufacturing (ATVM) Mortgage Program, which was resurrected by President Joe Biden in 2022. The corporate says it should work with the DOE to shut the mortgage “shortly,” underscoring the race-against-the-clock facet that Democrats and EV firms 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 mentioned 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 embody the ATVM mortgage program as properly.

The mortgage program attained virtually legendary standing within the EV startup world because of 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 essential to Rivian’s plans to increase its manufacturing capabilities and develop its lineup, together with the extra reasonably priced R2 and R3 autos. The corporate says over 2,000 full-time employees will probably be wanted for its development. The manufacturing facility will start operations in 2028, and by 2030, will make use of 7,500 employees, Rivian mentioned.

The mortgage can be the primary to assist the manufacturing of EVs, fairly than their part components, the DOE mentioned in a press release. The manufacturing facility, known as Venture Horizon, will probably be situated 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 facility. 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 venture confidence in its long-term survival — particularly with the incoming Trump administration anticipated to be much less favorable towards EV firms.