Rivian announced on Thursday that it is scaling back the capacity of its planned electric vehicle factory in Georgia, following the Department of Energy's decision to reduce the company's advanced manufacturing loan from $6.6 billion to $4.5 billion under the Trump administration.
The factory, originally slated to produce up to 400,000 vehicles annually in two phases of 200,000 each, will now target a maximum of 200,000 units per year after full completion. The first phase remains on track for 200,000 vehicles, but the second phase has been downsized or may be deferred indefinitely.
CEO RJ Scaringe said in a statement, "While we remain committed to our long-term production goals, the revised loan terms require us to adjust our capital expenditure plans. This new factory will still be a cornerstone of our growth, but we must be prudent with our resources."
The loan reduction is part of a broader shift in the Trump administration's approach to EV incentives, with DOE officials citing a need to prioritize "market-driven" solutions over large government subsidies. The move has drawn criticism from clean energy advocates, who argue it undermines American competitiveness in the EV sector.
Rivian's stock fell 3% in after-hours trading following the announcement. The company had previously received significant federal support under the Inflation Reduction Act, but those policies have faced rollbacks under the current administration.
Construction on the Georgia site, which broke ground in 2024, is expected to continue with the revised scope. Rivian reaffirmed its 2026 production targets for its existing Illinois plant, which builds the R1T and R1S models.