Rivian to Receive $6.6 Billion Department of Energy Loan for Georgia Plant

Rivian (RIVN) announced precocious Monday that it has received "conditional commitment" from nan Department of Energy for a $6.6 cardinal indebtedness to finance nan building of a factory successful Georgia.

The electrical conveyance shaper has to clear technical, legal, and biology hurdles earlier nan conditional committedness becomes an officially funded loan, nan institution said.

The Department of Energy's Loan Programs Office has antecedently offered loans to different carmakers for illustration Tesla (TSLA), Ford (F), and Nissan.

Loan Would Allow Rivian to 'More Aggressively Scale' Production by 2030

“This indebtedness will thief create thousands of caller American jobs and further fortify U.S. activity successful EV manufacturing and technology,” Rivian CEO RJ Scaringe said, noting that it would let Rivian to "more aggressively scale" its U.S. manufacturing capacity.

Rivian said it would complete nan Georgia installation successful 2 phases, pinch an estimated 400,000 conveyance yearly accumulation capacity erstwhile it is completed. Its building and operation, Rivian said, will create thousands of jobs done 2030.

Rivian's banal was antecedently boosted Monday by an announcement from California Gov. Gavin Newsom, who said that nan authorities would restart a caller type of its "Clean Vehicle Rebate Program" if President-elect Donald Trump axes national taxation credits for EVs upon taking office—which he is expected to do.

Newsom said a caller type of nan programme could travel pinch "changes to beforehand invention and competition" successful nan industry. Wedbush analysts wrote Tuesday that could mean nan removal of Tesla vehicles from nan program, a further boost for competitors for illustration Rivian.

Rivian shares person swung successful some directions successful nan first hr of trading Tuesday, and are astir 50% beneath wherever they started nan year.