Rivian has finalised a loan agreement for up to $6.6bn with the US Department of Energy's (DOE) Loan Programs Office to support the development of new EV production facility in Stanton Springs North, Georgia.

The agreement includes $6bn in principal and approximately $600m in capitalised interest.

The planned “Project Horizon” will see Rivian develop a nine million square foot manufacturing plant capable of producing up to 400,000 electric SUVs and crossover vehicles annually.

Rivian's Georgia site will focus on producing its all-electric midsize platform, with the R2 and R3 models being the initial variants.

The company's current portfolio includes the R1S SUV, the R1T pickup truck, and commercial vans manufactured in Illinois.

Rivian founder and CEO RJ Scaringe said: “This loan will help us accelerate the launch of our Georgia plant for R2 and R3, providing thousands of jobs in the state.

“People are incredibly excited to get behind the wheel of our new models, and this additional capacity for our mass market products is key to U.S. leadership in the electric vehicle industry.”

Rivian's expansion into Georgia is a strategic move to increase production volumes, reduce costs, and expedite entry into international markets.

The construction of the facility is slated to commence in 2026, with the production of customer vehicles expected by 2028.

The loan is divided into two phases, with up to $3.4bn allocated for the first phase and up to $2.6bn for the second, excluding capitalised interest.

In November 2024, Rivian expanded its partnership with Volkswagen, forming a joint venture focused on software and electronic systems for electric and autonomous vehicles.

This follows Volkswagen's announcement of a $5bn investment in Rivian earlier last year.