Rivian has downsized its new electric vehicle factory in Georgia, following a reduction in the Department of Energy’s loan agreement to $4.5 billion from an originally promised $6.6 billion.

The company initially planned for two phases producing a total of 400,000 vehicles annually but now targets only 300,000 units per year. Despite this reduction, the company remains optimistic about its timeline and is on track to start production in late 2028.

Rivian previously paused construction in Georgia due to financial constraints, using the time to launch its mid-sized R2 vehicle at its factory in Illinois. Negotiations with the new administration have resulted in a revised loan agreement, though the company will not see funds until early 2027.

Nevertheless, Rivian maintains that it has sufficient space for future expansion if it can secure additional funding. The company reported rising revenue during its first quarter earnings.