Rivian Automotive, Inc. (NASDAQ:RIVN) shares are trading higher premarket on Tuesday. The company disclosed a conditional commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program for up to $6.6 billion.
The loan comprises $6 billion in principal and approximately $600 million in capitalized interest.
Rivian expects the loan to support its growth and strengthen its hold in EV design, development, and manufacturing in the U.S.
If finalized, the DOE loan will help Rivian’s construction of a new facility in Stanton Springs North, Georgia, significantly expanding its U.S. production capacity to meet domestic and international demand.
The funding will primarily support the production of Rivian’s midsize platform, which includes the R2 SUV and R3/R3X midsize crossovers.
Designed, engineered, and manufactured in the U.S., these vehicles are expected to combine capability, performance, functionality, and competitive pricing, positioning them as key contributors to Rivian’s long-term growth and profitability.
The DOE loan would boost the U.S. EV industry, creating 7,500 operational jobs and 2,000 construction jobs at Rivian’s planned Georgia facility, with Phase 1 production starting in 2028.
The facility will add 400,000 units of annual capacity in two phases, supporting domestic and international markets.
These efforts complement jobs at Rivian’s Illinois plant, strengthening the U.S. EV ecosystem and economy.
Rivian plans to build a state-of-the-art manufacturing facility at the Stanton Springs site near Atlanta, incorporating advanced construction techniques, environmental management, and community investments while preserving natural spaces.
The DOE’s conditional loan commitment signals intent to finance Rivian’s project, pending fulfillment of technical, legal, environmental, and financial conditions.
If approved, the loan will be secured by the project’s assets, fixed assets, and guarantees from Rivian Automotive, Inc. and select subsidiaries.
Investors can gain exposure to the stock via Renaissance IPO ETF (NYSE:IPO) and First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN).
Price Action: RIVN shares are up 6.037% at $12.30 premarket at the last check Tuesday.
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