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Biden Grants Rivian $6 Billion for Georgia EV Factory

Electric and Concept Cars

Biden Grants Rivian $6B for Georgia EV Factory Boost

Business Honor
26 November, 2024

The Biden administration grants Rivian a $6 billion loan to build an electric vehicle factory in Georgia

The Biden administration announced a $6 billion loan to Rivian, an electric vehicle manufacturer, in order to help finance a new factory being built in Social Circle, Georgia. The loan should assist in increasing production of electric vehicles, according to the administration, as part of its effort to encourage more electric vehicles and lower carbon emissions. Rivian's planned auto plant will make sport utility vehicles and hatchbacks, and it promises to begin production in 2028. Once fully operational, the factory will employ a total of 7,500 people and create around 2,000 indirect jobs in construction.

The company, backed by major investors including Amazon, is struggling with finances. The new facility will enhance its capacity for manufacturing, complementing its other plant in Normal, Illinois. Rivian's models, midsize SUV and hatchback, will range from about $45,000, which is much less than its current models at around $70,000.

This loan is part of a larger federal effort toward promoting electric vehicle manufacturing throughout the United States. The Biden administration has already committed almost $27 billion to investments in EV manufacturing, with an ambition to increase the market share of electric vehicles to 50% by 2030. Completion of this loan agreement before President-elect Donald J. Trump assumes office is considered a critical step toward building a future for U.S.-assembled electric vehicles and job creation running into thousands.

The project is supported by Georgia Governor Brian Kemp, but it draws criticism from several Republicans, arguing the loan to be an unnecessary public expense. Rivian, along with other American carmakers such as Ford and General Motors, is part of a greater shift in the U.S. automobile industry toward electric cars in an attempt to join its peers in global markets such as Tesla.