Rivian has modified its loan agreement with the Department of Energy and now anticipates borrowing $4.5 billion for the construction of its new factory in Georgia, reduced from the initial $6.6 billion set aside during the Biden administration.

On Thursday, the company also revealed that it will access the loan earlier than initially planned, in early 2027, and aims to boost the Georgia plant’s total capacity from 200,000 to 300,000 vehicles in its initial operational phase. This increased capacity—a 50% rise over its original proposals—will assist in decreasing its per unit costs while also allowing room for significant future capacity expansion in subsequent phases, the company stated on Thursday. 

Rivian has indicated previously that the Georgia facility would have a total capacity of 400,000 vehicles. While the capacity for the initial phase linked to the DOE loan has been raised, Rivian did not disclose its intentions for the second phase. The original plan included two phases, each with a capacity of 200,000 vehicles at the Georgia location. The company’s facility in Normal, Illinois has a capacity for 215,000 vehicles.

During the earnings call, CFO Claire McDonough did not disclose the capacity for the second phase, only noting that it was earmarked for future growth.

“The strategic choice we made was to elevate the initial production capacity to 300,000 units,” she mentioned during the call. “At our Georgia site, the full initial capacity will be allocated to the upper pad of the site. The lower pad will remain an untouched green field for future expansion.”

She emphasized that this $4.5 billion financing is crucial for Rivian to scale its operations up to an overall capacity of 515,000 units. This number is 100,000 units less than Rivian’s previously projected combined capacity at both factories.

A portion of the factory’s capacity will be utilized to manufacture R2 robotaxis for Uber. Under an agreement made earlier this year, Uber plans to make an initial $300 million investment in Rivian and is slated to acquire 10,000 fully autonomous R2 robotaxis ahead of a planned launch in San Francisco and Miami by 2028. The initial $300 million payment is anticipated to finalize in the second quarter, with an additional $250 million investment expected later this year, as per Rivian.

The ride-hailing service has the option to purchase up to 40,000 more autonomous R2 SUVs from Rivian starting in 2030. Uber has indicated it will invest up to $1.25 billion in Rivian through 2031, contingent upon the automaker achieving a series of milestones.

Rivian initiated construction on the Georgia factory late last year and is currently in the early phases of vertical construction at the site, located near Atlanta. The company anticipates starting vehicle production by the end of 2028. In the interim, Rivian will produce R2 SUVs at its existing factory in Normal, Illinois.

The company recently commenced production of the R2 despite sustaining damage to the plant from a tornado. Rivian mentioned on Thursday that initial deliveries have been made to employees, with customer deliveries expected to commence “in the coming weeks,” according to Rivian.

Adjustments to the DOE loan coincide with Rivian’s disclosure of its financial results for the first quarter of 2026 on Thursday. The company reported $1.38 billion in revenue, of which $908 million was generated from vehicle sales and $473 million from software and services. Rivian’s automotive revenue saw a decline of about 2% compared to the same period last year, partly due to a decrease in regulatory credits.

The company recorded a loss of $416 million for the quarter, down from a $541 million loss in the same timeframe last year. This reduction in net loss was aided by a $506 million gain in other income related to the Series A capital raise and the subsequent deconsolidation of CEO RJ Scaringe’s new startup Mind Robotics, as reported by the company.

Rivian experienced a year-over-year rise in operating expenses and research and development costs. Rivian’s R&D budget saw a 20% increase to $458 million as it raised spending on R2 pre-production expenses and software and cloud services necessary for the development of autonomous vehicle technology.

The combination of these escalating costs and a minor increase in capital investment negatively impacted Rivian’s free cash flow, which is currently in the red. The company reported a negative free cash flow of $1 billion, nearly twice the amount from a year prior.

This article has been revised with remarks from Rivian’s CFO and previously referenced capacity figures.