Rivian has recently secured a loan agreement for up to $6.6 billion from the US Department of Energy’s Loan Programs Office. This loan will support the development of a new electric vehicle production facility in Stanton Springs North, Georgia. The agreement includes $6 billion in principal and approximately $600 million in capitalised interest.
The planned project, known as “Project Horizon,” will involve the development of a nine million square foot manufacturing plant capable of producing up to 400,000 electric SUVs and crossover vehicles annually. The focus of Rivian’s Georgia site will be on producing its all-electric midsize platform, with the R2 and R3 models being the initial variants.
Currently, Rivian’s portfolio includes the R1S SUV, the R1T pickup truck, and commercial vans manufactured in Illinois. The company’s founder and CEO, RJ Scaringe, expressed excitement about the loan, stating that it will help accelerate the launch of the Georgia plant for R2 and R3 models, providing thousands of jobs in the state.
The expansion into Georgia is a strategic move for Rivian to increase production volumes, reduce costs, and expedite entry into international markets. Construction of the facility is set to begin in 2026, with the production of customer vehicles expected by 2028. The loan is divided into two phases, with up to $3.4 billion allocated for the first phase and up to $2.6 billion for the second phase, excluding capitalised interest.
In November 2024, Rivian expanded its partnership with Volkswagen, forming a joint venture focused on software and electronic systems for electric and autonomous vehicles. This collaboration follows Volkswagen’s announcement of a $5 billion investment in Rivian the previous year.
Overall, Rivian’s new loan agreement and expansion into Georgia mark significant milestones in the company’s growth and development within the electric vehicle industry. The future looks promising for Rivian as it continues to innovate and expand its presence in the market.
