Investing.com -- Shares of Rivian Automotive Inc. (NASDAQ:RIVN) climbed 2.8% following the announcement that the electric vehicle manufacturer finalized a loan agreement with the U.S. Department of Energy. This financial move is set to bolster the construction of Rivian’s future manufacturing site in Georgia.
The agreement secures up to $6.6 billion, including $6 billion of principal and approximately $600 million of capitalized interest, earmarked for the Stanton Springs North facility near Social Circle, Georgia. The loan is a significant step for Rivian, as it aims to cement American leadership in the electric vehicle sector and create 7,500 new manufacturing jobs. The funding will also expedite the production of Rivian’s upcoming R2 SUV and R3 crossover models.
Rivian’s founder and CEO, RJ Scaringe, expressed enthusiasm for the accelerated launch of the Georgia plant, which is expected to commence construction in 2026 with production of customer vehicles slated for 2028. Scaringe highlighted the importance of the loan in fostering U.S. leadership in the electric vehicle industry and the excitement surrounding Rivian’s new models.
The company has already started hiring for construction and management roles in the region, anticipating a surge in recruitment as the project advances. The loan will be divided into two phases for Rivian’s Georgia facility, with the first phase potentially receiving up to $3.4 billion and the second up to $2.6 billion, excluding capitalized interest.
Rivian plans to design and construct a state-of-the-art manufacturing facility at the Stanton Springs site, utilizing modern construction techniques and advanced environmental management. The initiative underscores Rivian’s commitment to preserving natural spaces while actively investing in the surrounding communities.
The stock’s positive movement reflects investor confidence in Rivian’s future growth and its role in advancing the electric vehicle industry in the United States. The partnership with the Department of Energy is a testament to the collaborative effort to support this burgeoning sector and Rivian’s strategic expansion.
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