The Biden administration has agreed to loan troubled electric car maker Rivian $6 billion to build a new factory near Atlanta, Georgia, a huge sum from an administration loving EVs. This is assistance.
of new york times report The Biden administration announced a $6 billion loan to Rivian, which makes electric vehicles and has struggled significantly in recent years. The loan will be used to fund the construction of a new factory in Social Circle, Georgia, near Atlanta, where Rivian will manufacture midsize sport utility vehicles and hatchbacks.
The loan agreement is expected to close before President-elect Donald J. Trump takes office in January and will be a binding agreement between the Department of Energy and Rivian. The move is seen as part of the Biden administration's efforts to secure a left-wing climate policy before the next administration takes office.
This funding is a critical lifeline for Rivian. The company has struggled to turn a profit while selling vans to businesses and pickups and SUVs to consumers. The Georgia plant will complement Rivian's existing plant in Normal, Illinois, and will produce SUVs that start at about $45,000, compared to the company's current consumer cars, which start at about $70,000. do.
Rivian Chief Executive Officer RJ Scaringe said the loan will create thousands of new jobs in the United States and help further strengthen the country's leadership in electric vehicle manufacturing and technology. The project has also received support from Georgia Governor Brian Kemp (R), who announced the plan in front of the Georgia State Capitol in Atlanta in December 2021.
Rivian recently received additional support from Volkswagen, with the two companies forming a joint venture to develop software and electronics. Volkswagen plans to invest $5.8 billion in the joint venture and Rivian, extending the partnership announced in June.
Breitbart News reported earlier this year that Rivian was in deep financial trouble.
CNBC reported that shares of electric car makers Rivian and Lucid plunged on Thursday following disappointing fourth-quarter earnings reports released after the market closed on Wednesday. Rivian stock fell about 25% and Lucid stock fell nearly 17%.
Both companies cited stagnant production volumes and “existing economic and geopolitical uncertainties” as factors affecting performance. Rivian projects production of 57,000 vehicles in 2024. This is approximately the same as the production volume of 57,232 vehicles in 2023. Meanwhile, Lucid expects vehicle production to be 9,000 units this year, an increase of just 7% compared to 2022 levels.
read more of new york times here.
Lucas Nolan is a reporter for Breitbart News, covering free speech and online censorship issues.
