Trump's Budget Cuts Endanger Biden's $6.6B Loan to Rivian for Electric Vehicle Manufacturing | Carscoops
Georgia's Governor acknowledged that the Rivian loan could potentially be canceled by the Trump administration.
President Donald Trump has targeted several federal loans as part of his cost-cutting measures.
The proposed Rivian factory is expected to produce up to 400,000 electric vehicles annually.
Rivian plans to commence production at the nine-million-square-foot facility in 2028.
In the final days of the Biden administration, the government greenlit a significant loan of $6.6 billion to electric vehicle startup Rivian for the construction of its long-anticipated manufacturing plant in Georgia. However, with President Donald Trump continuing to reduce federal spending, the future of the loan is uncertain.
Rivian has ambitious plans for Georgia. The intended production facility will span approximately nine million square feet and have the capacity to manufacture up to 400,000 electric crossovers and SUVs each year. It is expected to create around 2,000 jobs during construction and up to 7,500 once operational. Nevertheless, during a recent interview, Georgia Governor Brian Kemp expressed uncertainty regarding the status of the federal loan.
Read: Biden Admin Finalized Rivian’s $6.6 Billion Loan Before Trump Took Office
“They secured that loan at the end of the Biden administration, and, you know, it's well-known that the Trump administration is reviewing all these matters,” Kemp stated during an interview with WSB-TV 2. “So I can't really say where it currently stands.”
Rivian intends to begin utilizing the loan next year and remains optimistic about its availability. “We’re working hard to bring US manufacturing back, creating thousands of American jobs here in Georgia,” the company said. If the loan is withdrawn, it could lead to “chaos,” according to Georgia Democratic Senator Jon Ossoff.
Despite these worries, Kemp noted that the state is still eager to support Rivian with the plant and is committed to protecting taxpayers. “We have set parameters in place, whether it’s regarding the incentives or the location itself to safeguard taxpayers, no matter what happens with that side,” he mentioned. “Rivian continuously assures us they are moving forward, and we’re taking them at their word.”
Rivian has already begun hiring for the site and aims to start production in 2028. The factory will focus on manufacturing the R2 and R3 models, two more affordable electric vehicles that are crucial for the brand, which has been losing money on every R1S and R1T sold.
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Trump's Budget Cuts Endanger Biden's $6.6B Loan to Rivian for Electric Vehicle Manufacturing | Carscoops
The Governor of Georgia acknowledged that the Trump administration might withdraw the loan to Rivian.