Rivian and the U.S. Department of Energy (DOE) have finalized a $6.6 billion loan under the Advanced Technology Vehicle Manufacturing (ATVM) program, enabling the electric vehicle maker to move forward with its planned factory in Georgia.
Construction of the facility, located east of Atlanta, is set to begin in 2026, with the first R2 SUVs expected to roll off the production line in 2028.
The loan, announced in November 2023, is part of the DOE’s Loan Programs Office, which previously supported Tesla with a $465 million loan in 2009. Rivian’s funding will be allocated in two tranches: up to $3.35 billion for the initial phase and up to $2.62 billion for the second phase.
The remaining $600 million is designated for interest elimination. Rivian has 52 months to begin drawing funds and must meet specific DOE conditions, including achieving production milestones for its R2 and R3 models and hitting sales targets for vehicles manufactured at its Illinois factory.
The project has drawn criticism from political figures, including Vivek Ramaswamy, who has suggested revisiting the loan agreement if the incoming administration seeks to reevaluate government efficiency initiatives. However, specific plans for addressing the loan remain unclear.
Rivian first announced its Georgia factory plans in December 2021, shortly after its highly successful IPO. The company initially intended to start production at the site in 2024 but paused construction in 2022 to prioritize cost-cutting and shift R2 production to its Illinois facility.
