Rivian Downsizes DOE Loan to $4.5B for Georgia Factory, Eyes Autonomous R2 SUV Expansion

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.

This reduction in loan size comes as Rivian revealed financial results for the first quarter of 2026, highlighting a decline in automotive revenue and increased spending on R&D and capital expenditures.

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.

Rivian's larger capacity 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.

• The ride-hailing company has the option to buy up to 40,000 more autonomous R2 SUVs from Rivian starting in 2030.
• Uber will invest up to $1.25 billion in Rivian through 2031 if the automaker meets a series of milestones.

Rivian broke ground on the Georgia factory late last year and is in the beginning stages of doing so-called vertical construction at the site located outside Atlanta. The company expects to start making vehicles by the end of 2028. Until then, Rivian will build R2 SUVs at its current factory in Normal, Illinois.

Rivian recently started production of the R2 despite the plant suffering damage from a tornado, and Rivian said Thursday it has made initial deliveries to employees. Deliveries to customers are expected to start 'in the coming weeks, according to Rivian.

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