In a move that could be overturned by the incoming Trump administration, the Biden-Harris administration has conditionally approved a substantial $6.57 billion loan to electric vehicle manufacturer Rivian. This funding is intended for the construction of a massive 9 million-square-foot EV production facility in Georgia, known as Project Horizon.
The Department of Energy (DOE) stated that this initiative aligns with the Biden-Harris administration's objective of having half of all new vehicle sales be zero-emission by 2030. However, this target is likely to be discarded under President-elect Donald Trump's leadership. This loan represents another instance of President Biden allocating significant funds toward climate-related projects in his final months in office.
Rivian R1T electric pickup trucks at a service center. (Bing Guan)
The DOE projects that the Stanton Springs North, Georgia facility could manufacture up to 400,000 electric SUVs and crossovers if the project reaches completion. However, before the deal is finalized, Rivian must meet several technical, legal, environmental, and financial requirements. This tight timeframe gives the current administration only two months to finalize the agreement before the Trump administration takes over, potentially jeopardizing the project.
R1T trucks on the Rivian assembly line. (Brian Cassella)
The loan, provided through the Loan Programs Office (LPO), comprises $5.975 billion in principal and $592 million in capitalized interest. The DOE emphasized that this investment underscores the Biden-Harris administration's dedication to bolstering American manufacturing competitiveness and maintaining leadership in the expanding electric vehicle sector.
