Rivian Automotive Inc.‘s (NASDAQ:RIVN) $6.6 billion federal loan for its planned electric vehicle manufacturing plant in Georgia hangs in the balance following recent actions by the President Donald Trump administration.
What Happened: Georgia Governor Brian Kemp expressed uncertainty about the loan’s status in an interview with Channel 2 News. “They secured that loan at the tail end of the [Former President Joe] Biden administration,” Kemp said. “The Trump administration is taking a look at all those things, so I don’t really know where that stands right now,” reported Electrek.
The uncertainty stems from Trump’s January order to pause federal funding, which was rescinded within two days but has already created complications. Georgia Senator Jon Ossoff warned that the suspension “threatens chaos” for federal grants in the state.
Despite the funding concerns, Tesla Inc (NASDAQ:TSLA) rival Rivian maintains its commitment to the project. A company spokesperson emphasized their focus on “working hard to onshore U.S. manufacturing, providing thousands of American jobs here in Georgia.” The automaker has already begun hiring for construction and management positions.
Why It Matters: The federal loan, structured in two phases, includes $3.4 billion in initial funding followed by $2.6 billion in the second phase. The 1,744-acre facility, located 40 miles east of Atlanta, is expected to create 7,500 permanent jobs and 2,000 construction positions.
Rivian plans to manufacture its more affordable R2 and R3 electric vehicles at the new plant, with the R2 SUV starting at approximately $45,000 – roughly half the price of current Rivian models. The facility aims to achieve an annual production capacity of 400,000 EVs, with customer vehicle production scheduled to begin by the end of 2028.
While Governor Kemp affirmed his support for Rivian, he emphasized the need to protect taxpayers’ interests. “We got parameters in, and whether it’s the incentives, the site itself to protect taxpayers regardless of what happens with that site,” he stated.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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