The Biden administration previously announced it would provide electric vehicle maker Rivian with a $6.6 billion loan to build a factory in Georgia.
The administration said the loan will help Rivian build a facility to produce up to 400,000 “mass-market” electric SUVs and crossovers.
Specifically, the company plans to help build Rivian's R2 and R3 models, which the company says will be sold at a “significantly lower price point” than its flagship R1, which is considered a luxury car.
This announcement was made with the incoming Trump administration setting its sights on EVs. President Trump has promised to roll back standards expected to force traditional automakers to increase the proportion of electric or hybrid vehicles in their fleets.
Trump's team too reportedly planning It proposes eliminating the consumer tax credit of up to $7,500 for EV purchases, but that would require a vote in Congress.
The Biden administration has emphasized support for electric vehicles as a way to combat climate change and pollution.
They also argue that supporting growth in the sector will also help create jobs, a claim that Republicans deny and warn that the transition to EVs will harm the workers who make gas-powered cars. are. Experts told The Hill the truth lies somewhere in between.
Funding for Rivian's conditional loan comes from the Department of Energy's Office of Loan Programs, which lends money to support the development of new technologies.
That office also Funded Tesla in 2010donated billions of dollars under the Biden administration.
The incoming Trump administration is expected to be less interested in financing emerging low-carbon energy technologies. As of late Septemberthe firm had $24 billion in unfinished conditional loans.
The Biden administration says the Rivian facility will support 2,000 full-time construction jobs and 7,500 operations jobs by 2030.
“This loan will create thousands of new jobs in the United States and further strengthen America's leadership in EV manufacturing and technology,” Rivian founder and CEO RJ Scaringe said in a written statement. It will be helpful.” “
This financing will enable Rivian to more aggressively expand its U.S. manufacturing footprint for competitively priced R2 and R3 vehicles that focus on both capability and affordability. ” Scaringe added.
Prices for the R2, one of the vehicles produced at the facility, are expected to start at about $45,000. According to , the average price of a new car in the U.S. in October was $48,623. kelly blue book.
