The Biden administration is offering billions of dollars in federal loans to fund large-scale electric vehicle manufacturing plants in the months before the end of the president's term.
The Department of Energy on Monday announced a $6.57 billion loan to EV maker Rivian Automotive to help build Project Horizon, a 9 million square foot electric vehicle facility in Georgia.
The DOE said the initiative “supports the Biden-Harris Administration's goal of making half of all new vehicles sold in 2030 zero-emission vehicles,” but the EV goal is set by the incoming administration of President-elect Donald Trump. Likely to be abolished.
The conditional pledge comes during the final months of President Joe Biden's presidential term to help fund dozens of climate-related efforts across the country, as he cements his legacy on the issue. This was done at a cost of over 100 million dollars.
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A Rivian R1T electric pickup truck is parked at the Rivian Service Center on Monday, October 30, 2023 in Brooklyn, New York City. (Bin Guan)
If the deal closes, the DOE expects it will be able to produce up to 400,000 mass-market electric SUVs and crossovers at its Stanton Springs North, Ga., facility.
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However, before signing the financing documents, companies must meet technical, legal, environmental and financial conditions before the loan can be finalized, according to the DOE.
That means the White House has just two months to hammer out a deal before the Trump administration intervenes, potentially derailing plans that don't align with the agenda.
An R1T truck on the assembly line at the Rivian Electric Vehicle Plant on April 11, 2022. (Brian Casella)
The funding will be provided by the Biden administration's Loan Program Office (LPO) and includes $5.975 billion in principal and $592 million in capital interest, according to a press release announcing the loan.
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In a press release announcing the project, the DOE said, “Today's announcement is a sign of Biden's commitment to strengthen U.S. manufacturing competitiveness and ensure that U.S. companies remain world leaders in the rapidly expanding EV industry. It reinforces the Harris Administration's commitment.”
