Rivian to Receive $6.6 Billion Department of Energy Loan for Georgia Plant | Global News Avenue

Rivian (Ruiwei Network) announced late Monday that it had received a “conditional commitment” from the Department of Energy for a $6.6 billion loan to fund construction. Georgia Factory.

Electric carmakers must clear technical, legal and environmental hurdles before conditional commitments can become a reality. officially funded loansthe company said.

The Department of Energy’s Office of Loan Programs has previously provided loans to Tesla and other automakers (Tesla), Ford (F) and Nissan.

Loan will allow Rivian to “more aggressively scale production” through 2030

“This loan will help create thousands of new jobs in the United States and further strengthen U.S. leadership in electric vehicle manufacturing and technology,” said Rivian CEO RJ Scaringe, noting that it will allow Rivian to “More aggressively expanding” its manufacturing capabilities in the United States.

Rivian said the Georgia plant will be completed in two phases and is expected to have an annual production capacity of 400,000 vehicles upon completion. Rivian says its construction and operations will create thousands of jobs by 2030.

California Gov. Gavin Newsom announced Monday that the state will restart a new version of its “clean vehicle program” if President-elect Donald Trump eliminates federal tax credits for electric vehicles after taking office. Kickback Program,” Rivian’s stock price had previously been boosted on Monday.he expected to do so.

Newsom said the new version of the program could lead to “changes that promote innovation and competition in the industry.” Wedbush analysts wrote on Tuesday that this could mean Tesla Motors will be excluded from the plan, further boosting rivals such as Rivian.

Rivian shares swung in both directions during the first hour of trading on Tuesday, down nearly 50% from the start of the year.