10:45 AM EST, 11/26/2024 (MT Newswires) -- Rivian Automotive's ( RIVN ) conditional commitment for a loan of up to $6.6 billion from the US Energy Department is an "important next step" for the company, Truist said in a report Tuesday.

The company said late Monday the loan will back the construction of its a plant in Georgia and will fund the production of its midsize electric vehicle platform.

The Georgia plant will be used to make Rivian's future R2 and R3/3X vehicles, with construction slated to start in Q2 2026, Truist said.

The announcement is an "incremental positive" for Rivian alongside the Volkswagen joint venture, the investment firm said.

Truist said the Georgia facility loan for Rivian is the "second largest ever approved/under conditional commitment" at the Energy Department's Loan Programs Office after the $9.2 billion loan for Ford's (F) BlueOval project.

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