A federal loan of nearly $6 billion will help electric vehicle maker Rivian restart construction of a $5 billion vehicle and battery factory near Covington, U.S. Sen. Jon Ossoff, D-Ga., announced. , announced on Tuesday.
The project was expected to create 7,500 jobs when it was announced in late 2021. But things seemed doubtful last March when Rivian unveiled plans to build its new R2 crossover models at a factory in Illinois instead of Georgia.
“There was real concern last spring that construction would never begin,” Ossoff told reporters in an online briefing Tuesday morning. “What we have now is a big step forward to ensure this plant is built in Georgia.”
At the time it was announced, the Rivian plant was the largest economic development project in the state’s history. However, it was surpassed five months later by an announcement that Hyundai would build a $5.5 billion EV factory west of Savannah.
The loan from the U.S. Department of Energy (DOE) is conditional. Rivian must fulfill a number of obligations to the project before the loan is finally approved. The loan will be financed through the Inflation Reduction Act that Congress passed in 2022.
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“We are excited to reach this important chapter in our growth,” said RJ Scaringe, founder and CEO of Rivian’s of California. “We are grateful for our strong partnerships in Georgia and will continue to work closely with them as we bring this historic facility to life.”
According to the DOE’s Loan Programs Office, Rivian plans to produce its mid-size R2 and R3 models first at the new factory. The project, due to start in 2028, would support up to 2,000 full-time construction jobs and up to 7,500 operational jobs by 2030.
If completed, the loan would support the construction of a 9 million-square-foot factory that could produce up to 400,000 electric SUVs and crossovers annually.
President-elect Donald Trump took a cool stance on electric vehicles and threatened to withdraw a federal tax credit of up to $7,500 to encourage the purchase of electric vehicles.
“This river power plant is a critical part of Georgia’s economic future,” Ossoff said. “I will oppose any attempt to undermine Georgia’s economic development.”
This article originally appeared on Savannah Morning News: Rivian gets federal loan to restart Georgia EV factory near Covington
