Rivian to Receive $6.6 Billion Department of Energy Loan for Georgia Plant

Rivian (RIVN) announced late Monday that it has received “conditional commitment” from the Department of Energy for a $6.6 billion loan to finance the construction of a factory in Georgia.

The electric vehicle maker has to clear technical, legal, and environmental hurdles before the conditional commitment becomes an officially funded loan, the company said.

The Department of Energy’s Loan Programs Office has previously offered loans to other carmakers like Tesla (TSLA), Ford (F), and Nissan.

Loan Would Allow Rivian to ‘More Aggressively Scale’ Production by 2030

“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,” Rivian CEO RJ Scaringe said, noting that it would allow Rivian to “more aggressively scale” its U.S. manufacturing capacity.

Rivian said it would complete the Georgia facility in two phases, with an estimated 400,000 vehicle annual production capacity once it is completed. Its construction and operation, Rivian said, will create thousands of jobs through 2030.

Rivian’s stock was previously boosted Monday by an announcement from California Gov. Gavin Newsom, who said that the state would restart a new version of its “Clean Vehicle Rebate Program” if President-elect Donald Trump axes federal tax credits for EVs upon taking office—which he is expected to do.

Newsom said a new version of the program could come with “changes to promote innovation and competition” in the industry. Wedbush analysts wrote Tuesday that could mean the exclusion of Tesla vehicles from the program, a further boost for competitors like Rivian.

Rivian shares have swung in both directions in the first hour of trading Tuesday, and are nearly 50% below where they started the year.