By Akash Sriram and Abhirup Roy
April 30 (Reuters) – Rivian said on Thursday it will get up to a $4.5 billion loan from the U.S. Department of Energy, about $2 billion lower than previously approved, to build its plant in Georgia and will draw the funds earlier than planned in 2027.
Access to the loan will be crucial for the electric-vehicle maker, which like many of its peers has been burning cash, as it starts building the Georgia plant and equips it to expand production of the smaller and more affordable R2 SUVs, seen as critical for the company’s success.
Rivian, which beat first-quarter revenue estimates, set first-phase Georgia capacity at 300,000 vehicles, versus earlier plans that implied about 400,000 units over multiple phases.
Under a previous agreement late in 2024, Rivian was set to receive $6.6 billion to build the Georgia plant as part of U.S. efforts to boost domestic EV manufacturing and battery supply chains.
The revised loan structure removes the requirement to fund a significant portion of project costs upfront, allowing the company to access the DOE funds earlier.
“Whereas before the loan was across two phases, it’s now the $4.5 billion loan across a single phase,” Rivian CEO RJ Scaringe told Reuters. “I look at it as it reflects the level of confidence we have on our midsize platform.”
The company had earlier forecast the cost of the Georgia plant at $5 billion. Scaringe did not disclose the current cost estimate following the changed plans.
Rivian said in a regulatory filing it may raise funds over time by offering securities, but did not disclose the size of the raise. Shares of the Irvine, California-based company were down about 3% in extended trading.
STRONG FIRST-QUARTER RESULTS
The company began producing R2 vehicles for customers last week, with deliveries expected later this spring. It also plans to produce an R3 crossover eventually.
Rivian, known for its high-end R1 SUVs and pickup trucks, also beat Wall Street estimates for first-quarter revenue, as growth in higher-margin software and services partly offset pressure on its core automotive business.
Revenue rose about 11% to $1.38 billion in the quarter, topping analysts’ estimates of $1.36 billion, while adjusted core loss of $472 million was narrower than expectations.
Rivian said macroeconomic and geopolitical uncertainty were adding supply-chain complexity and cost pressure, though it was working with suppliers and seeking alternative sources for key commodities.
The company beat deliveries estimates in the first quarter and on Thursday reaffirmed its full-year outlook of 62,000 to 67,000 vehicles, driven in part by the R2 launch.
Rivian priced the R2 launch variant at $57,990, with cheaper trims planned for next year, including a widely anticipated $45,000 version expected by late 2027 that could significantly broaden its customer base.
The EV maker is betting the R2 will offset demand pressure after a $7,500 U.S. tax credit expired, though higher-priced R1T and R1S models are expected to dominate deliveries this year.
Rivian is also deepening partnerships to support growth, including a deal with Uber to deploy up to 50,000 autonomous R2 robotaxis and continued collaboration with Volkswagen, which recently unlocked a $1 billion investment tied to joint software development milestones.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Sriraj Kalluvila)
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