Rivian expands battery recycling partnership and secures DOE loan

Rivian is expanding its partnership with Redwood Materials to enhance battery recycling and energy storage capabilities. The collaboration will involve collecting and recycling battery production scrap at Rivian’s vehicle factory in Normal, Illinois. Additionally, retired Rivian battery packs will be repurposed for stationary energy projects, such as grid energy storage, before the critical materials—including nickel, cobalt, copper, and lithium—are recycled.

Separately, Rivian is navigating a $4.5 billion loan from the U.S. Department of Energy (DoE) to support the construction of its second factory in Georgia. While the loan itself is not dilutive to shareholders, the requirement for Rivian to provide matching capital contributed to a recent capital raise involving the issuance of over 86 million new shares. The DoE loan features an interest rate based on the U.S. Treasury yield curve with a 0% credit spread.