Rivian (RIVN) secures billions in US funding for its new EV plant in Georgia [Updated]

Ahead of Trump’s return to the White House, Rivian (RIVN) secured up to $6.6 billion in funding for its second EV manufacturing plant. The new facility will be home to Rivian’s more affordable midsize R2 electric SUV.

Rivian to get billions in funding for its second EV plant

On Thursday, Rivian announced it closed its loan agreement with the US Department of Energy (DOE) for up to $6.6 billion in financing for its new EV plant in Georgia.

The EV maker has already begun hiring for construction and management positions in the area, and several other positions are open across the state. Recruitment is “expected to ramp quickly” as it prepares to begin construction on the facility.

Rivian’s loan will be split into two phases. The first is expected to include a loan of up to $3.4 billion, with the remaining $2.6 billion coming in the second phase.

CEO RJ Scaringe said, “This loan will help us accelerate the launch of our Georgia plant for R2 and R3, providing thousands of jobs in the state.” Construction is expected to begin next year. In 2028, Rivian plans to start producing customer vehicles.

The news comes after the Biden administration announced a conditional commitment in November of up to $6.57 billion to finance the development and construction of the new GA facility.

The financing is part of the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans for manufacturing ATVs and related materials “that improve fuel economy” in the US.

With Trump taking office, the program will likely be challenged again. In his first term, Trump already asked Congress to remove it. The incoming administration is now looking to alter it to finance fossil fuels, which would only set the US further behind.

In November, Rivian said the loan would “provide significant funding for production of the company’s midsize platform, which underpins the R2, a midsize SUV, and R3/R3X, a midsize crossover.

Home to Rivian’s midsize R2 and R3

The EV maker explained that its upcoming R2 and R3 vehicles will be “critical drivers in the company’s long-term growth and profitability.”

Rivian plans to build the plant in two stages, each adding 200,000 units of annual production capacity. The 1,744-acre site, 40 miles east of Atlanta, consists of 44 parcels of land. Through 2030, the company is expected to create around 7,500 jobs, while another 2,000 construction jobs will be established in the region.

Rivian unveiled the midsize R2 and R3 models last March. Starting at $45,000, the R2 is nearly half the cost of an R1S and R1T.

A filing with the DOE in October revealed Rivian planned to begin operations in GA in Q3 2027, but full capacity was not expected until 2028.

According to the filing, Rivian could break ground as soon as Q2 2026 and have the first shop ready by the third quarter of next year.

The DOE said Rivian’s new plant, which will produce 400,000 EVs annually, would help reduce ” overall national emissions of air pollutants and human-caused GHGs.” Last year, Rivian produced just under 49,500 vehicles at its Normal, IL plant.

Since reporting third-quarter earnings in November, Rivian’s stock is up over 40%. However, RIVN share prices are still down around 20% over the past year and over 90% from their peak in November 2021.

Check back soon, as the announcement is expected to be finalized at any moment. We’ll keep you updated with the latest.

Update: 1/16/25, 5:00 pm: The article was updated to include Rivian’s official announcement, which includes specific details and comments from CEO RJ Scaringe.

Source: DOE, Rivian