Rivian cuts new EV factory after Trump’s DOE cuts loan deal

Rivian announced some changes today regarding the factory it is building in the state of Georgia.

The company plans to build the facility in two phases, resulting in a capacity of 200,000 vehicles per year. for a total of 400,000 units. Rivian held a groundbreaking ceremony late last year.

Now the company says it is planning 300,000 units of annual energy due to a revised credit agreement with the US Department of Energy – even though they plan to hit annual power sooner than originally planned. The DOE will now lend Rivian $4.5 billion, instead of the agreed-upon initial funding of $6.6 billion, which was announced in the last days of the Biden administration.

In 2024, Rivian has suspended its plans for a factory in Georgia, since it lacked funds to start construction. The company said the break also prompted Rivian to launch its R2 mid-size car soon. Production of the R2 began at the company’s plant in Normal, Illinois this month. And in the meantime, Rivian was negotiating with the DOE, now under the anti-EV Trump administration, to protect its debt.

The negotiations have now led to Rivian’s decline. As construction begins this year, the company says it expects to begin drawing down the loan by early 2027, and remains on track to produce vehicles in Georgia by the end of 2028. The DOE loan “is consistent with the revised site design and road map of up to $4.5 billion,” the company said in a press release.

The company also says it has plenty of room for future expansion, if it can get enough capital to start construction. Rivian also reported an increase in revenue as part of its first quarter earnings.