The Georgia Rivian plant will resume construction

Dive brief:

• The Department of Energy announced last week that it closed on a $6.57 billion loan electric vehicle manufacturer Rivian for an electric vehicle plant that had previously been put on hiatus.
• The loan will support the construction of the 9 million square foot manufacturing facility near the town of Social Circle, Georgia, near Atlanta. The project plans to create 2,000 of them full time jobs through constructionaccording to the ad.
• Rising costs caused the company to do so stop the construction of the plant in the spring of 2024. The electric vehicle manufacturer, which selected based in Chicago Clayco as general contractor — said at the time that he remained committed to the project.

Diving knowledge:

When work first stopped, Irvine, Calif.-based Rivian said Clayco would maintain a “presence” at the job site and that the company would continue to conduct limited development activities at the site.

Rivian expects construction to begin in 2026 with production of the company’s R2 SUVs and R3 crossover vehicles beginning in 2028.

The company said it has already begun hiring for construction and management roles, with multiple positions open across the state, and plans to increase hiring.

The loan, which includes $5.975 billion in principal and $592 million in capitalized interest, will be split into two phases of the Georgia facility.

The loan is conditional and is an example of former President Joe Biden’s agenda to invest in projects related to renewable energy. But with the new administration, things could change.

President Donald Trump made moves on his first day in office by limiting the adoption of some types of renewable energy and related products, including electric vehicles. This could slow down or slow down the construction of such projects.

Trump also ordered agencies to pause disbursements of Jobs and Infrastructure Investment Act and Inflation Reduction Act funds for electric vehicle charging stations.