Rivian announced some changes today regarding its factory construction in the state of Georgia. The company was planning to build the facility in two phases, which would result in an annual production capacity of 200,000 vehicles, for a total of 400,000 units.
The company now says it is planning annual capacity of only 300,000 units as a result of a revised loan agreement with the U.S. Department of Energy – although it plans to achieve that annual capacity sooner than originally planned. DOE will now loan Rivian $4.5 billion, instead of the originally agreed upon amount of $6.6 billion announced in the final days of the Biden administration.
In 2024, Rivian put its Georgia factory plans on hold because it lacked the funds to begin construction. The company argued that the hold allowed Rivian to launch its midsize R2 vehicle sooner. Production of the R2 began this month at the company’s factory in Normal, Illinois. And meanwhile, Rivian was negotiating with the DOE to secure its loan, which is now under the anti-EV Trump administration.
Those negotiations have now resulted in a lower amount for Rivian. As vertical manufacturing begins this year, the company says it expects to receive a first loan in early 2027, and is on track for vehicle production in Georgia in late 2028. The DOE loan “aligns with the updated facility design and roadmap of up to $4.5 billion,” the company said in a press release.
The company also says that it has plenty of room for expansion in the future, provided it has enough funds for construction. Rivian reported rising revenue as part of its first-quarter earnings.
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