Electric vehicle manufacturer Rivian will receive nearly $6.6 billion from the Biden administration to construct a factory in Georgia as part of the White House’s agenda to expand the EV industry.
The Energy Department’s Loan Program Office announced Tuesday that Rivian will receive a direct loan of up to $6.57 billion to finance the development and construction of Project Horizon, an EV manufacturing facility in Stanton Springs North, Georgia.
DOE officials said the project will create up to 2,000 full-time jobs through construction and 7,500 operations jobs by 2030. The facility would manufacture up to 400,000 electric sport utility and crossover vehicles. Production is set to begin in 2028.
“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,” Rivian founder and CEO RJ Scaringe said in a press release.
In particular, the facility would help to build Rivian’s R2 midsize SUV and the R3/R3X, a midsize crossover. The two vehicles are Rivian’s smaller and less expensive vehicles.
“This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Scaringe added. “A robust ecosystem of U.S. companies developing and manufacturing EVs is critical for the U.S. to maintain its long-term leadership in transportation.”
The Biden administration has pushed to expand the EV industry through tax incentives from the Inflation Reduction Act. However, there have been reports that President-elect Donald Trump may slash the federal $7,500 tax credits for EV purchases, which has caused some headwinds for those in the industry.
On Monday, Gov. Gavin Newsom (D-CA) announced a plan to challenge those possible tax credit cuts, stating that California would provide rebates for residents who purchase EVs.
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Rivian’s competitor, Tesla, could be one of the EV manufacturers not qualified for California’s new rebates. Tesla CEO Elon Musk has been a close adviser to the incoming Trump administration and supports slashing incentives for EVs.
Musk on X called Newsom’s plan to exclude Tesla from the incentives “insane.” He said, “Even though Tesla is the only company who manufactures their EVs in California!”