A nearly $6 billion federal loan will help electric vehicle manufacturer Rivian restart construction of a $5 billion vehicle and battery plant near Covington, U.S. Sen. Jon Ossoff, D-Ga., announced Tuesday.
When it was announced in late 2021, the project was expected to create 7,500 jobs. However, last March, Rivian announced plans to build its new R2 crossover models at a factory in Illinois instead of Georgia, putting the project in doubt.
“There was real concern last spring that construction would never start,” Ossoff told reporters Tuesday morning in an online briefing. “What we have now is a major step forward to ensure this plant is built in Georgia.”
The Rivian plant was the most significant economic development project in the state's history when it was announced. However, it was surpassed five months later by an announcement that Hyundai would build a $5.5 billion EV plant west of Savannah.
The loan from the U.S. Department of Energy is conditional. Rivian must fulfill several commitments to the project for the loan to gain final approval. The loan is being funded through the Inflation Reduction Act Congress passed in 2022.
“We are excited to arrive at this important chapter in our growth,” said RJ Scaringe, California-based Rivian's founder and CEO. “We are grateful for our strong partnerships in Georgia and will continue to work closely with them as we bring this landmark facility to life.”
According to the DOE's Loan Programs Office, Rivian plans to produce its midsize R2 and R3 models at the new plant. The project, which is due to begin operations in 2028, would support up to 2,000 full-time construction jobs and up to 7,500 operations jobs by 2030.
If finalized, the loan would support the construction of a 9-million-square-foot facility that would manufacture up to 400,000 electric SUVs and crossover vehicles annually.
President-elect Donald Trump has been hesitant about electric vehicles and has threatened to repeal a federal tax credit of up to $7,500 that would incentivize the purchase of EVs.
“This Rivian plant is a crucial part of Georgia's economic future,” Ossoff said. “I'll oppose any effort to undermine Georgia's economic development.”