Rivian announced some changes today with regard to the factory its building in the state of Georgia. The company was planning to build the facility in two phases, each resulting in 200,000 vehicles of annual production capacity, for a total of 400,000 units.
Now the company says it is only planning for 300,000 units of annual capacity as a result of a revised loan agreement with the US Department of Energy -- though its planning on hitting that annual capacity sooner than originally planned. DOE will now loan Rivian $4.5 billion, instead of the originally agreed amount of $6.6 billion, announced in the last days of the Biden administration.
In 2024, Rivian put its Georgia factory plans on hold, as it lacked the funds to start the construction. The company argued that the pause also allowed Rivian to launch its mid-sized R2 vehicle sooner. R2 production kicked off at the company's factory in Normal, Illinois this month. And meanwhile, Rivian was negotiating with DOE, now under the anti-EV Trump administration, to secure its loan.
Those negotiations have now resulted in a lower amount for Rivian. As vertical construction starts this year, the company says it expects to first draw on the loan by early 2027, and remains on track for vehicle production in Georgia in late 2028. The DOE loan "is aligned with the updated facility design and roadmap at up to $4.5 billion," the company said in a press release.
The company also maintains it has plenty of space for future expansion, should it have enough money to fund the construction. Rivian reported rising revenue as part of its first quarter earnings.
