Rivian has reworked its mortgage take care of the Division of Power and now expects to borrow $4.5 billion to construct its new manufacturing unit in Georgia, down from the unique quantity of $6.6 billion allotted underneath the Biden administration.
The corporate additionally introduced Thursday that it’s going to draw on the mortgage earlier than deliberate, in early 2027, and expects to extend the full capability of the Georgia plant from 200,000 to 300,000 autos in its preliminary section of operation. The bigger capability — a 50% enhance over its preliminary plans — will assist decrease its per unit prices, whereas additionally offering vital room for future growth of capability in later phases, the corporate stated Thursday.
Rivian has beforehand stated the Georgia manufacturing unit would have a complete capability of 400,000 autos. Whereas the preliminary section, which is tied to the DOE mortgage, has been elevated, Rivian didn’t share what its plans are for the second section. The unique plan was for 2 200,000-vehicle capability phases on the Georgia web site. The corporate’s manufacturing unit in Regular, Illinois has a 215,000-vehicle capacity.
In the course of the earnings name, CFO Claire McDonough didn’t share what capability that second section can be, besides to say that it was reserved for future growth.
“The strategic resolution that we took was to extend the preliminary section of manufacturing capability to the 300,000 items,” she stated on the decision. “On our Georgia web site, the complete preliminary capability will likely be placed on the higher pad on the web site. So we now have the decrease pad, which continues to be going to be solely untouched inexperienced area for future growth.”
She famous the significance of this $4.5 billion funding was to permit Riven to scale its operation as much as 515,000 items of general capability. That determine is 100,000 decrease than Rivian’s beforehand said mixed capability on the two factories.
A few of the manufacturing unit’s capability will likely be used to provide R2 robotaxis for Uber. Beneath a deal struck earlier this yr, Uber is making an preliminary $300 million funding in Rivian and is anticipated to buy 10,000 absolutely autonomous R2 robotaxis forward of a deliberate rollout in San Francisco and Miami in 2028. That preliminary $300 million fee is anticipated to shut within the second quarter, and one other $250 million funding is deliberate for later this yr, in line with Rivian.
The ride-hailing firm has the choice to purchase as much as 40,000 extra autonomous R2 SUVs from Rivian beginning in 2030. Uber will has stated it should make investments as much as $1.25 billion in Rivian by 2031 if the automaker meets a sequence of milestones.
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Rivian broke floor on the Georgia manufacturing unit late final yr and is at first phases of doing so-called vertical building on the web site situated exterior Atlanta. The corporate expects to begin making autos by the top of 2028. Till then, Rivian will construct R2 SUVs at its present manufacturing unit in Regular, Illinois.
The corporate just lately began manufacturing of the R2 regardless of the plant struggling harm from a twister, and Rivian stated Thursday it has made preliminary deliveries to workers. Deliveries to prospects are anticipated to begin “within the coming weeks, in line with Rivian.
The modifications to the DOE mortgage come as Rivian revealed monetary outcomes for the primary quarter of 2026 on Thursday. The corporate generated $1.38 billion in income, with $908 million coming from automobile gross sales and $473 million from software program and providers. Rivian’s automotive income declined about 2% from the identical year-ago interval, due partially to drop in regulatory credit.
The corporate misplaced $416 million within the quarter, down from a $541 million loss in the identical interval final yr. That internet loss shrank thanks, partially, to s $506 million acquire in different earnings associated to the Collection A capital elevate and associated deconsolidation of CEO RJ Scaringe’s new startup Thoughts Robotics, in line with the corporate.
Rivian noticed its working bills and R&D prices develop year-over-year. Rivian’s R&D finances expanded 20% to $458 million because it elevated spending on R2 pre-production prices in addition to software program and cloud providers associated to the event of autonomous automobile know-how.
The mix of those rising prices, plus a small uptick in capital spending, was a drag on Rivian’s free money movement, which is in unfavourable territory. The corporate reported a unfavourable free money movement of $1 billion, practically double from a yr in the past.
This text has been up to date with feedback from Rivian’s CFO and beforehand said capability figures.
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