Rivian’s (RIVN) $6.6 billion federal loan to build its new EV manufacturing plant in Georgia faces uncertainty after President Trump froze federal loans. Georgia Gov Brian Kemp said he’s “not sure” about where the funds stand.
Rivian’s loan for its new EV plant faces uncertainty
After Rivian closed its loan agreement with the US Department of Energy to finance its new facility last month, just before Trump took office, the funding is already in jeopardy.
“They secured that loan at the tail end of the Biden administration and, you know, I think there’s no secret that the Trump administration is taking a look at all those things,” Kemp told Richard Elliot from Channel 2 news this week. He added, “So I don’t really know where that stands right now.”
The comments come after the Trump administration’s abrupt order to pause federal funding in January. Although the order was rescinded less than two days later, it’s already wreaking havoc.
Georgia Senator Jon Ossoff commented on the situation, saying, “The president’s suspension of federal grants for Georgia threatens chaos.”
Although Kemp said he remains committed to helping Rivian, he will also protect taxpayers. “We got parameters in, and whether it’s the incentives, the side itself to protect taxpayers regardless of what happens with that side,” he explained.
Still plowing ahead
Despite the uncertainty, Rivian is confident the funds will still be available next year when it draws from the loan. A Rivian spokesperson said, “We’re working hard to onshore US manufacturing, providing thousands of American jobs here in Georgia.”
Rivian has already begun hiring for construction and management. Last month, the EV maker said recruitment was “expected to ramp quickly” as it prepared to restart construction on the facility.
As of now, the loan will be split into two phases. The first phase consists of a loan of up to $3.4 billion, with the remaining $2.6 billion in the second phase.
Rivian’s CEO RJ Scaringe said the loan would “help us accelerate the launch of our Georgia plant for R2 and R3, providing thousands of jobs in the state.”
The EV maker is still plowing ahead with plans to restart construction next year. By the end of 2028, Rivian expects to begin producing customer vehicles.
Top comment by Al
They should just say they're working on a gas version called "freedom", with an exclusive trump trim that features gold plated tourbillion seats. That should be enough to secure the funds.
The 1,744-acre site is 40 miles east of Atlanta. It’s expected to create about 7,500 jobs and another 2,000 construction positions in the area.
Rivian will produce its smaller, more affordable R2 and R3 electric vehicles at the facility. The midsize R2 SUV will start at around $45,000, or about half the cost of Rivian’s current R1S and R1T.
Once up and running, Rivian’s new plant in Georgia is expected to be able to produce up to 400,000 EVs annually. The new R2 is expected to attract a new base of buyers to the brand at a lower price point. Check back soon for more info on the situation. We’ll keep you updated with the latest.
Source: WSBTV
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