The US Department of Energy will make a $6.6-billion loan available to California-based Rivian Automotive to allow the startup EV maker to complete the construction of a factory in Georgia.

Construction of the $5-billion battery and assembly plant, which was first announced in 2021 and which is 40 miles east of Atlanta, was paused in March. Rivian had planned to start building its new R2 midsize SUVs there, but instead began production at its plant in Normal, lllinois. Pausing the operation freed up $2.25 billion in capital spending, allowing the company to get the auto to market faster.

It’s far from certain as to whether the administration will be able to complete the deal, which is from the Department of Energy’s Advanced Technology Vehicle Manufacturing Program, before President Biden leaves office.

Rivian began making large electric R1 SUVs, pickup trucks and delivery vans at a former Mitsubishi plant in Normal, Illinois, in 2021.

“This loan would enable Rivian to more aggressively scale our US manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” RJ Scaringe, the company’s CEO, said.

The Department of Energy said that the loan would substantially boost electric vehicle manufacturing in the United States and support the Biden Administration’s goal of having zero-emission vehicles comprise half of all new US auto sales by 2030.

“As one of a few American EV startups with light-duty vehicles already on the road, Rivian’s Georgia facility will allow the company to reach production volumes that make its products more cost-competitive and accelerate access to international markets,” the department said.

Source: Rivian Automotive