Rivian Receives Conditional Commitment for up to $6.6 Billion Loan from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) Program

Rhea-AI Summary

Rivian Automotive (NASDAQ: RIVN) has received a conditional commitment from the U.S. Department of Energy for a loan of up to $6.6 billion through the Advanced Technology Vehicle Manufacturing Program. The loan would support the construction of Rivian's new facility in Georgia, aimed at producing the company's midsize R2 SUV and R3/R3X crossover vehicles. The facility is planned for 400,000 units of annual production capacity across two phases, with Phase 1 starting production in 2028. The project is expected to create 7,500 operations jobs through 2030 and 2,000 construction jobs. The loan remains subject to technical, legal, environmental, and financial conditions.

Positive

• Secured conditional commitment for $6.6B government loan
• Planned production capacity expansion of 400,000 units annually
• Expected creation of 7,500 new operations jobs by 2030
• Strategic expansion into midsize vehicle market with R2 and R3 models

Negative

• Production at new facility won't start until 2028
• Loan approval still subject to multiple conditions
• Significant debt addition to balance sheet if approved

Insights

Financial Analyst

This $6.6 billion conditional loan commitment from the DOE represents a significant financial catalyst for Rivian. The funding structure, including $6 billion principal and $600 million capitalized interest, would substantially strengthen Rivian's capital position for its Georgia facility expansion. The planned 400,000 unit annual production capacity across two phases marks a strategic scaling milestone, potentially transforming Rivian from a niche player to a major EV manufacturer.

The loan's federal backing and favorable terms could significantly reduce Rivian's capital costs compared to traditional financing. With 7,500 new operations jobs planned through 2030, this expansion positions Rivian to compete more effectively with established automakers in the growing mid-size EV segment. The R2 and R3 platform strategy targeting more affordable price points could unlock broader market penetration and improve long-term profitability prospects.

Manufacturing Operations Expert

The planned Georgia facility represents a sophisticated manufacturing expansion with several strategic advantages. The two-phase approach with 200,000 units each allows for measured scaling while incorporating advanced production technologies. The facility's location near Atlanta provides robust logistics infrastructure and access to a skilled workforce.

The focus on the new R2/R3 platform demonstrates intelligent manufacturing planning - using a shared architecture to produce multiple vehicles maximizes operational efficiency and reduces production costs. The 2028 production timeline for Phase 1 provides adequate runway for supply chain development and workforce training. This manufacturing strategy could significantly improve Rivian's cost structure and operational leverage.

IRVINE, Calif.--(BUSINESS WIRE)-- American all-electric automaker Rivian Automotive (NASDAQ: RIVN) today announced it has received conditional commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program for a loan of up to $6.6 billion (including $6 billion of principal and approximately $600 million of capitalized interest) to accelerate its growth and leadership of electric vehicle design, development and manufacturing in the United States.

If finalized, the loan would support the construction of Rivian’s next facility in Stanton Springs North, near the city of Social Circle, Georgia, substantially expanding the company’s domestic production capacity to support demand from the United States and international markets. This loan from DOE would provide significant funding for production of the company’s midsize platform, which underpins the R2, a midsize SUV, and the R3/R3X, a midsize crossover. Designed, engineered, and built in America to deliver an incredible combination of capability, function, performance, and pricing, Rivian believes its R2 and R3 vehicle lines will be critical drivers in the company’s long-term growth and profitability.

The DOE loan would provide an important boost to the U.S. automotive industrial base, enabling significant job creation and investment that is important for the United States to maintain its leadership as electric vehicles become a strategically important industry.

Rivian intends to build the facility in two phases, each resulting in 200,000 units of annual production capacity, for a total of 400,000 units of annual capacity–supporting the sale of American EVs in international markets. Phase 1 of the project is expected to start production in 2028. Rivian is expected to create approximately 7,500 operations jobs through 2030 at the company’s future manufacturing facility in Georgia. This is in addition to 2,000 expected full-time construction jobs that will utilize the region’s significant talent and workforce to further strengthen the domestic EV ecosystem. These jobs complement the thousands Rivian has already created and plans to maintain at its current plant in Normal, Illinois, which have bolstered the local and regional economy.

“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,” said Rivian Founder and CEO RJ Scaringe. “This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability. A robust ecosystem of U.S. companies developing and manufacturing EVs is critical for the U.S. to maintain its long-term leadership in transportation.”

Rivian plans to design and build a fully modern manufacturing facility at the Stanton Springs Site, less than one hour’s drive from downtown Atlanta, employing modern construction techniques and advanced environmental management while preserving natural spaces and investing actively in the surrounding communities.

Over the history of the loan program, DOE has helped energize American EV manufacturing with billions in financing for this strategically important industry, including loans to General Motors and Tesla.

While this conditional commitment indicates DOE’s intent to finance the project, DOE and the company must satisfy certain technical, legal, environmental, and financial conditions before the Department of Energy enters into definitive financing documents and funds the loan. If finalized, the loan would be secured by all assets of the project and fixed assets and guarantees of the parent company, Rivian Automotive, Inc. and certain of its subsidiaries.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the final approval, the use of proceeds, and the expected impact of the DOE loan, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A, “Risk Factors” in Rivian’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and its other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

About Rivian

Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. The company provides a full suite of services that address the entire lifecycle of the vehicle and stay true to its mission to keep the world adventurous forever. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal — preserving the natural world for generations to come.

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FAQ

What is the amount of the DOE loan commitment to Rivian (RIVN)?

Rivian (RIVN) has received a conditional commitment for a $6.6 billion loan from the U.S. Department of Energy's ATVM program, including $6 billion in principal and approximately $600 million in capitalized interest.

When will Rivian (RIVN) start production at its new Georgia facility?

Rivian (RIVN) expects to start Phase 1 production at its new Georgia facility in 2028.

How many jobs will Rivian (RIVN)'s new Georgia facility create?

Rivian (RIVN)'s new Georgia facility is expected to create approximately 7,500 operations jobs through 2030 and 2,000 full-time construction jobs.

What is the planned production capacity for Rivian (RIVN)'s new Georgia facility?

Rivian (RIVN)'s new Georgia facility is planned to have a total annual production capacity of 400,000 units, built in two phases of 200,000 units each.