Rivian, an American electric vehicle maker, has been struggling, but things might be looking more positive in the future, according to Boosted.
The U.S. Department of Energy has agreed to loan the company $6.6 billion.
This loan will help Rivian build a new factory in Stanton Springs North, Georgia, to produce electric vehicles.
If everything goes as planned, the loan will fund a factory that can make up to 400,000 vehicles a year.
The factory will focus on two models, the R2 and R3. The U.S. government sees these as vehicles for the mass market.
The project is expected to create thousands of jobs. About 2,000 jobs will be created during the construction phase, and around 7,500 jobs will be added once the factory is up and running by 2030.
This is seen as an important step for Rivian, as it could help make their vehicles more affordable and competitive.
The factory’s vehicles are expected to save 553 million liters of gasoline per year, which is another benefit.
Rivian plans to break the project into two stages. The first stage should begin in 2028, with production of 200,000 vehicles annually.
According to Rivian CEO RJ Scaringe, this loan will help the company scale up production of its more affordable R2 and R3 models.
However, the loan is not final yet. Some have raised concerns about whether the Trump administration will try to block it.
Rivian had previously delayed the launch of some models and decided to build the R2 at their plant in Normal, Illinois, in order to save over $2 billion.
Rivian has also received a significant investment from Volkswagen. The German company is betting on Rivian as a replacement for its own failed electric car project.
