EV maker Rivian could restart Georgia plant construction as $6.6bn loan approved

Rivian unveiled the R2 SUV earlier this year (Image: REUTERS/Mike Blake/File Photo)

Rivian said it could start operation of the plant, where it will produce its smaller, less expensive R2 SUVs and R3 crossovers, in 2028.

The company paused construction of the Georgia plant earlier this year amid a slowdown in EV sales in a bid to conserve cash and hasten the production of the R2.

Instead, it decided to start building the R2 at its existing plant in Normal, Illinois.

Now Rivian plans to use the loan from the Department of Energy to build the plant in Georgia, with the aim of closing the loan before the Trump administration takes over, according to Reuters.

The company, which previously put the cost of the plant at $5bn, will have to satisfy certain technical, legal, environmental and financial conditions before the loan is granted. Rivian is not expected to oppose union organizing efforts at the plant, although loan approval will not guarantee unionization at the facility, Reuters said.

“This loan would enable Rivian to more aggressively scale our US manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian CEO RJ Scaringe said.

The announcement of the loan comes less than two weeks after Rivian closed its $5.8 billion investment from German automaker Volkswagen as part of their technology joint venture.

The incoming Trump administration is expected to undo many Biden-era policies and incentives that encourage production of EVs in the US.