Rivian secures $6.6 billion loan for new plant – but with one major caveat
California EV maker Rivian has said it has secured conditional approval of a loan of up to $6.6 billion from the U.S. Department of Energy to build a production facility in Georgia. Among those conditions is a big one, that the company won’t actively oppose union organizing efforts.
Rivian has been setting plans in place to build a plant in Georgia – the company’s second US plant – but the company has hit some tough economic times, with shares dropping about 50% this year. Earlier this year, the company put its Georgia factory on hold.
Since, it has been building its smaller, more affordable R2 SUV at its plant in Normal, Illinois, where it also makes its flagship R1S SUVs and the R1T pickup trucks.
“This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian CEO RJ Scaringe said in the statement.
Of course, it is “conditional” approval, meaning that Rivian has “to satisfy certain technical, legal, environmental, and financial conditions before the energy department grants the loan,” the company said.
Rivian secures a $6.6 billion loan from the US Department of Energy – with a few stipulations
While details of the conditions weren’t included in the original report, one detail was, at least touched on: that Rivian will not, in fact, actively oppose union organizing efforts at the Georgia plant, a source close to the subject told Reuters. But that of course, the loan wouldn’t “guarantee unionization” at the plant either. In an email, Rivian declined to comment on the matter at this time.
The Illinois factory, its only plant, has also been in the spotlight due to racking up more “serious” US safety violations than any other automaker since the start of 2023, according to Bloomberg. And the company hasn’t been exactly warm to unionizing efforts, despite pressures from President Biden to do so. Back when Rivian applied for financing from the Department of Energy, the government was already nudging the company to shift to a friendlier stance toward the United Auto Workers Union, although what that exactly means isn’t clearer. It could mean, as Bloomberg cited in July, to include discussion around labor engagement and showing more openness to working with labor unions. Of course, the incoming president has a different stance on this issue, so perhaps the current lack of clarity is just a way of holding off until we have a better idea of how both the EV landscape and UAW support will change.
The Rivian factory in Normal employs around 7,400 workers, and the EV maker is one of the city’s largest employers, with multiple members of some families working at the plant.
Rivian’s Georgia plant will have a yearly capacity of 200K
The Georgia loan comes from the government’s Advanced Technology Vehicles Manufacturing loan program, which has also given loans to Tesla, Ford, and GM. Rivian’s Georgia EV plant is the second-largest development project in the state behind Hyundai’s $7.6 billion facility that began production last week.
The plant would help Rivian bring 400,000 EVs to market “and into greater use,” the Department of Energy said back in October as it was considering the loan. The 1,744-acre site for the plant is 40 miles east of Atlanta, and will include two production blocks, each with a capacity of up to 200,000 vehicles annually. Rivian is expected to break ground in the second quarter of 2026.
Monday, Rivian announced that the loan includes $6 billion of principal and $600 million of capitalized interest. The news follows that of Rivian closing its $5.8 billion investment from Volkswagen as part of their technology joint venture. Back in 2022, Rivian secured $1.5 billion in state and local incentives for the Georgia plant. In May, the EV maker received $847 million in state incentives to expand its Illinois factory.
Photo credit: Rivian
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Tesla has opened orders for the Model Y Long Range RWD for $45,000 in the US. It’s the new entry-level Model Y following the design refresh earlier this year.
Since launching the updated Model Y earlier this year, Tesla has only offered the best-selling electric SUV in a single Long-Range AWD configuration.
First, it was as a fully-loaded $60,000 Launch Edition, and last month, it started deliveries of the regular Model Y AWD starting at $49,000.
As we recently noted, Tesla didn’t have much of an order backlog for the new Model Y in the US, and it has already started gathering new Model Y AWD in inventory just weeks after launching the vehicle.
Tesla even started offering subsidized financing rates on the new SUV this weekend.
Now, the automaker is starting to take orders for the new Model Y Long Range RWD
The new trim starts at $44,990 and enables 357 miles of range – an extra 30 miles over the AWD version.
However, due to its single motor powertrain, the lower-priced version is slightly slower with a 0-60 mph acceleration in 5.4 seconds rather than 4.6 seconds.
The automaker says that deliveries of the new version will start in the US in the next 3 to 5 weeks. It launched the new Model Y RWD in Europe weeks ago.
Tesla also offers a Standard Range RWD in Europe and China for even cheaper, and deliveries have already started in China.
Electrek’s Take
Tesla appears to have waited to open orders for the Model Y RWD in the US to optimize demand for the Long Range AWD.
But now it needs a cheaper model to sustain demand at the current production rate.
In the coming weeks, it will start building a mix of RWD and AWD in Fremont and Austin to
Interestingly, Tesla currently only offers the subsidized 1.99% financing rate on the Model Y Long Range AWD. I would assume that Tesla plans to take advantage of the boost in demand that the cheaper model will create.
However, US buyers probably won’t have to wait more than a few weeks before Tesla starts to offer lower interest rates on all versions, like it already does in Europe and China.
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![Big Mack, hydrogen Honda, and a ride in the Tesla Semi at ACT Expo 2025 [part 6]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/act-2025.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
On today’s thrilling episode of Quick Charge, we’ve got some of the highlights of the 2025 ACT Expo, including the all-electric Windrose and Mack Pioneer Class 8s trucks, a hydrogen fuel sell [sic] from Honda, a fun charging surprise, and – after an eight year wait – we finally get a ride in the all-new (in 2017) Tesla Semi!
ACT Expo is North America’s premier clean truck and transport trade show – and for 2025 it was bigger than ever, with more exhibitors and more, more capable battery electric vehicles than ever. The downsides? NACFE have scored with their “messy middle” messaging, and the return of “clean diesel” talking points. We’ve got a brief rundown and links to all the details, below.
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Abundance Energy, sonnen, and Energywell are teaming up to bring smarter, more resilient energy to Texas homes through a huge new virtual power plant (VPP) initiative.
By combining behind-the-meter home batteries, solar power, and advanced energy software, the trio is building a network of connected homes that can work together to support the grid. Customers who install sonnenConnect home batteries through Abundance Energy will now be part of a system that automatically stores and shares power when it’s needed most. That means lower electricity bills, better reliability during extreme weather, and a cleaner energy mix overall.
The VPP will cover all of ERCOT, with the primary focus in the greater Dallas-Fort Worth and Houston areas. Each home will have two 4.8kW/20kWh sonnenCore+20 battery units. The current customer base that will be enrolled in the VPP equals 60 MWh, and this will continue to grow each month. The VPP is already on track to replace Tesla as the largest virtual power plant in Texas by the end of 2026.
Here’s how it works: The batteries are continuously managed using Energywell’s Proton platform and sonnen’s smart VPP technology. This system monitors solar generation, customer energy use, and real-time electricity prices, and then decides when to charge or discharge each battery. Instead of just sitting idle, these batteries turn into mini power plants that can react to grid needs in real time.
And when thousands of batteries work together, they form a virtual power plant—a decentralized network that reduces the strain on the grid, especially during peak demand or power outages. Unlike traditional power plants, VPPs don’t burn fossil fuels. They use clean, stored electricity from homes and businesses, helping cut carbon emissions while keeping the lights on.
“Our mission is to empower homeowners with smarter, more sustainable energy solutions,” said Thomas Mandry, CEO of Abundance Energy. “This partnership delivers a new kind of VPP model that benefits customers and strengthens the Texas grid.”
Blake Richetta, CEO of sonnen, added, “With Abundance Energy and Energywell, we’re showing how everyday homeowners can become part of the solution to Texas’ energy challenges.”
As Texas continues to face grid reliability issues, especially in extreme heat or cold, this kind of flexible, customer-powered energy system will make homes more resilient and give customers more control over their power.
Read more: The US’s largest virtual power plant now runs on 75,000 home batteries
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