Rivian Could Secure a $6.6 Billion Loan for Georgia Factory

Portions -- or potentially the entirety -- of the Inflation Reduction Act could be in jeopardy as a new administration prepares to move into the White House. But it's hard to underscore the employment opportunities that come from investing in sustainability. This is especially true in the automotive world where thousands of jobs have been created and will be created as automakers transition to electric vehicles. These vehicles will be built in -- sometimes brand-new -- facilities that are many times fed batteries by an additional facility nearby. 

Electric vehicle manufacturer Rivian recently announced that it has received a conditional commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program for a loan of up to $6.6 billion to build a factory in Georgia. Rivian states that if it receives the loan it will create up to 7,500 jobs through 2030. That's in addition to the estimated 2,000-person workforce needed to build the facility. 

The loan is still in the "conditional commitment" phase. Rivian would work with the government to satisfy certain conditions before it could get the money. If it all works out, Rivian would not be the first automaker to secure one of these loans. Both GM and Tesla have used an ATVM loan to expand manufacturing. 

The facility would be built in two phases, each phase capable of producing 200,000 vehicles annually. Once completed, Rivians plans on building its R2 mid-size SUV and R3 crossover at the factory non the automaker's new Midsize Platform. Both of which Rivian states "will be critical drivers in the company’s long-term growth and profitability." 

Both vehicles were unveiled early this year with the R3 garnering a huge amount of buzz when it appeared on stage at the event. Rivian's current lineup of a mid-sized pickup and large three-row SUV has received generally positive reviews from the automotive press. 

Georgia has become a home for EV manufacturing with Hyundai beginning production of the Ioniq 5 rolling off production lines in the state and the upcoming Ioniq 9 SUV joining the vehicle at the company's Metaplant. 

Rivian did not note when it would need to meet conditions to secure the loan.