Rivian is set to draw on a $4.5 billion loan from the U.S. Department of Energy (DoE) to build its second factory in Georgia, with withdrawals expected in 2027. The loan is not directly dilutive, but it requires Rivian to contribute its own capital, which is why the company issued over 86 million new shares in July, raising roughly $1.3 billion. Interest is based on the U.S. Treasury yield curve with a 0% credit spread; the author estimates that compared with Rivian's $1.25 billion secured green notes at 10% annual interest, the loan could save hundreds of millions of dollars a year. Note A ($3.355 billion maximum principal) requires interest payments from June 15, 2030, principal repayments from 2031, and final maturity on March 15, 2045. However, the Georgia plant may be less profitable per vehicle than Rivian's Illinois factory in the early stage, as it will take time to reach scale.
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