Rivian Automotive Seeks Federal Loan for Georgia Factory

(Retuers) – Rivian Automotive has applied for a federal loan to support the construction of its electric vehicle factory in Georgia, as disclosed in a filing by the U.S. Department of Energy.

Loan Application Details

While Rivian (NASDAQ:RIVN) has submitted a loan application, the department has yet to make a final decision. The filing did not reveal the requested loan amount or terms.

Construction Timeline

The new facility is expected to begin partial operations in Q3 2027, with full production capacity anticipated in 2028.

Company Response

Rivian did not respond immediately to a request for further comments.

Project Adjustments

Previously, the company halted construction on its planned $5 billion Georgia factory to focus on accelerating the production of its R2 midsize platform vehicles, while also conserving cash. This shift aims to save $2.25 billion.

They have moved the manufacturing of the R2 midsize SUV—which will compete with Tesla (NASDAQ:TSLA)’s Model Y—to their Illinois factory, with production expected to commence in 2026.

Financial Incentives

Rivian received an $827 million incentive package from the State of Illinois to expand its Normal facility, which also produces electric delivery vans for Amazon.com (NASDAQ:AMZN). Last year, Rivian secured $1.5 billion in state and local incentives for the Georgia project.

Recent Developments

Earlier today, the Amazon-supported EV manufacturer reduced its annual production forecast and fell short of third-quarter delivery expectations, attributing it to parts shortages and a decrease in EV demand. As of June, Rivian held $5.76 billion in cash and cash equivalents along with long-term debt of $5.53 billion.

Joint Venture

In June, Volkswagen (ETR:VOWG_p) announced a $5 billion investment in Rivian as part of a new joint venture aimed at sharing electric vehicle architecture and software.