Investing.com-- Rivian said on Monday it had received conditional approval for an up to $6.6 billion loan from the U.S. Department of Energy, which is likely to be deployed towards a planned factory in Georgia.
Rivian Automotive Inc (NASDAQ:RIVN) received conditional approval from the DOE’s Advanced Technology Vehicle Manufacturing (ATVM) loan program, the electric vehicle maker said in a statement. The loan consists of a principal amount of $6 billion and $600 million in capital interest.
The loan is set to offer more support for the company’s upcoming midsize platform, which consists of smaller, less expensive SUVs including the R2 and R3 crossovers.
The midsize vehicles will be produced at the Georgia facility, where production is expected to start from 2028. Rivian said it will build the facility in two phases, each providing annual production capacity of 200,000 units.
The EV maker is grappling with a cash crunch amid sluggish sales, disrupted production and rising expenses. It had paused construction of the Georgia plant earlier this year.
The DOE’s ATVM program has provided funding to several other major automakers, including bigger EV rival Tesla Inc (NASDAQ:TSLA).
Tuesday’s announcement comes just days after Rivian clinched a $5.8 billion investment from German automaker Volkswagen (ETR:VOWG_p), as the latter attempts to use Rivian’s technology in making its own EVs.