- President Donald Trump has several federal loans in his crosshairs as he cuts expenses.
- The planned Rivian factory will have the ability to produce up to 400,000 EVs each year.
- Rivian plans to start production at the nine-million-square-foot site in 2028.
In the final few days of the Biden administration, the government approved a huge loan of $6.6 billion to EV startup Rivian for the construction of its long-planned manufacturing plant in Georgia. However, as President Donald Trump continues to slash federal expenditures, the viability of the loan is under threat.
Rivian has big plans in Georgia. Its planned production facility will spawn roughly nine million square feet and have a capacity of up to 400,000 electric crossovers and SUVs every year. It will also employ up to 2,000 people during construction and as many as 7,500 when operational. However, during a recent interview, Georgia Governor Brian Kemp admitted he’s not sure about the future of the federal loan.
Read: Biden Admin Finalized Rivian’s $6.6 Billion Loan Before Trump Took Office
“You know, they secured that loan at the tail end of the Biden administration and, you know, I think there’s no secret that the Trump administration is taking a look at all those things,” Kemp told WSB-TV 2. “So I don’t really know where that stands right now.”
Rivian plans to start drawing on the loan next year and remains confident the money will still be available for it. “We’re working hard to onshore US manufacturing, providing thousands of American jobs here in Georgia,” the firm said. If the loan is pulled, it “threatens chaos,” according to Georgia Democratic Senator Jon Ossoff.
Despite concerns, Kemp added the state still wants to help Rivian with the plant and will ensure that taxpayers are protected. “We got parameters in, and whether it’s the incentives, the side itself to protect taxpayers regardless of what happens with that side,” he said. “Rivian keeps telling us they’re coming and, you know, we’re taking them for their word at that.”
Rivian has already started hiring for the site and wants to start production in 2028. The factory will handle manufacturing of the R2 and R3 models, a pair of more affordable EVs that could be the make or break for the brand, which continues to lose money on every R1S and R1T it sells.
