The U.S. Department of Energy has announced a $6.6 billion loan to Rivian Automotive, a California-based electric vehicle (EV) startup, to help complete the construction of its $5 billion battery and assembly plant in Georgia. Located 40 miles east of Atlanta, the plant's construction was paused in March 2023. Rivian had originally planned to build its new R2 midsize SUVs there but shifted production to its plant in Normal, Illinois. Pausing construction freed up $2.25 billion in capital spending, allowing the company to expedite its vehicle market entry.

It remains uncertain whether the Department of Energy will finalize the deal before President Biden leaves office. The loan is part of the Department’s Advanced Technology Vehicle Manufacturing Program.

Rivian, which began production of its electric R1 SUVs, pickup trucks, and delivery vans in Normal, Illinois, in 2021, is now aiming to scale production with this new facility.

“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,” said RJ Scaringe, Rivian’s CEO.

The Department of Energy highlighted that this loan would significantly boost electric vehicle manufacturing in the U.S. and support the Biden Administration’s goal of having zero-emission vehicles account for 50% of all new U.S. auto sales by 2030.

“As one of a few American EV startups with light-duty vehicles already on the road, Rivian’s Georgia facility will allow the company to reach production volumes that make its products more cost-competitive and accelerate access to international markets,” the department added.