Rivian, the electric vehicle startup, has finalized a $6.6 billion loan agreement with the Department of Energy (DOE) to build its planned factory in Georgia, east of Atlanta. The loan, announced in November, was finalized just days before Donald Trump's inauguration, and will be used to fund the construction of the factory, which is expected to begin in 2026.

The loan comes from the Advanced Technology Vehicle Manufacturing (ATVM) program, part of the DOE's Loan Programs Office. The program is most well-known for providing a $465 million lifeline to Tesla in 2009. Rivian's loan is structured into two tranches, with the company able to borrow up to $3.35 billion in the first tranche and up to $2.62 billion in the second tranche. The remaining $600 million will be used to eliminate interest on the loan.

The loan has drawn criticism from Vivek Ramaswamy, who is set to co-lead the "department of government efficiency" with Elon Musk after Trump takes office. Ramaswamy has expressed his intention to claw back the loan, although it is unclear how he plans to do so. Neither Ramaswamy nor Musk has explained how they plan to structure and operate their new effort.

As part of the loan agreement, Rivian has made several promises to the DOE. The company must sell a certain number of its upcoming R2 SUVs, which will be built at its Normal, Illinois factory. The exact number is redacted in the loan agreement. Rivian must also hit certain product design milestones on the R2 and R3 hatchback.

Rivian first announced plans for the Georgia factory in December 2021, just a few weeks after its blockbuster IPO. The company originally claimed that it would start production at the yet-to-be-built facility in 2024. However, last year, Rivian paused construction on the factory and decided to build the R2 in Illinois instead, in a bid to cut costs. With the DOE loan in place, Rivian now believes it can roll new vehicles off the line at the plant four years later than originally planned.

The loan is a significant boost to Rivian's plans to expand its production capabilities and bring its electric vehicles to market. The company's R2 SUV is expected to be one of the first vehicles to roll off the production line at the Georgia factory, with production slated to begin in 2028. The loan also underscores the DOE's commitment to supporting the development of electric vehicles and reducing the country's reliance on fossil fuels.

Despite the criticism from Ramaswamy, the loan is a major win for Rivian and a testament to the company's ability to secure funding for its ambitious plans. With the DOE loan in place, Rivian can now focus on building out its factory and bringing its electric vehicles to market, which could have a significant impact on the electric vehicle industry as a whole.