Rivian downsizes DOE loan to $4.5B of Georgia factory

Rivian has reworked its loan deal with the Department of Energy and now expects to borrow $4.5 billion to build its new factory in Georgia, down from the original amount of $6.6 billion allocated under the Biden administration. The company also announced Thursday that it will draw on the loan sooner than planned, in early 2027, and expects to increase the total capacity of the Georgia plant from 200,000 to 300,000 vehicles in its initial phase of operation — another sign that the company has high hopes for its upcoming R2 SUV. The larger capacity — a 50% increase over its initial plans — will help lower its per unit costs, while also providing significant room for future expansion of capacity in later phases, the company said Thursday. Some of the factory’s capacity will be used to produce R2 robotaxis for Uber. Under a deal struck earlier this year, Uber is making an initial $300 million investment in Rivian and is expected to purchase 10,000 fully autonomous R2 robotaxis ahead of a planned rollout in San Francisco and Miami in 2028. That initial $300 million payment is expected to close in the second quarter, and another $250 million investment is planned for later this year, according to Rivian. The ride-hailing company has the option to buy up to 40,000 more autonomous R2 SUVs from Rivian starting in 2030. Uber will has said it will invest up to $1.25 billion in Rivian through 2031 if the automaker meets a series of milestones. …