The Biden administration announced a $6.6 billion loan to Rivian Automotive for constructing a factory in Georgia, seeking to revive a project that had previously stalled due to profitability challenges. This initiative aims to support Rivian's larger strategy to introduce R2 and R3 electric vehicles, catalyzing job creation with projections of 7,500 positions at the Georgia plant. The funds originate from the Advanced Technology Vehicles Manufacturing Loan Program, a federal initiative emphasizing low-cost loans for fuel-efficient vehicle production; it previously supported projects like the Tesla Model S. It's unclear whether the loan can be finalized before Donald Trump takes office.
Rivian's plans for the Georgia plan had been put on ice earlier this year, with the company saying it would its cheaper R2 vehicles in Illinois to cut costs; the Illinois plant is where the R1 vehicles, which cost $70,000 or more, are built. But a $5 billion investment from Volkswagen in June eased financial strains, enabling Rivian to reignite its Georgia endeavors. CEO RJ Scaringe mentioned this would accelerate their market entry for the R2 to 2026, saving significant capital.
Georgia's Gov. Brian Kemp, a critic of the Biden administration's industrial policy, emphasized Georgia's inherent appeal to manufacturers prior to federal intervention. Kemp may need to support the loan if it faces opposition, underscoring the state's aspiration to become a hub for electric vehicles. The state had previously offered Rivian substantial incentives and completed site preparations. Meanwhile, Hyundai's rapid development of a $7.6 billion facility near Savannah underscores the region's growing stature in the electric vehicle sector. (This story was generated by Newser's AI chatbot. Source: the AP)
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