EV Giveaway: Biden Administration Lends $6 Billion to Troubled Rivian for Electric Vehicle Factory

The Biden administration has agreed to lend $6 billion to troubled electric vehicle manufacturer Rivian to build a new factory near Atlanta, Georgia, a massive giveaway from an administration in love with EVs.

The New York Times reports that the Biden administration has announced that it will provide a $6 billion loan to Rivian, which produces electric vehicles but has struggled significantly in recent years. The loan will be used to finance the construction of a new factory in Social Circle, Georgia, near Atlanta, where Rivian plans to manufacture midsize sport utility vehicles and hatchbacks.

The loan agreement is expected to be finalized before the inauguration of President-elect Donald J. Trump in January, making it a binding contract between the Department of Energy and Rivian. This move is seen as part of the Biden administration’s efforts to secure leftist climate policies before the incoming administration takes office.

The financing is a crucial lifeline for Rivian, which has been struggling to generate profits while selling vans to businesses and pickups and SUVs to individual consumers. The Georgia factory will complement Rivian’s existing plant in Normal, Illinois, and produce SUVs with a starting price of around $45,000, compared to the company’s current consumer vehicles, which start at approximately $70,000.

R.J. Scaringe, the chief executive of Rivian, stated that the loan would help create thousands of new American jobs and further strengthen the country’s leadership in electric vehicle manufacturing and technology. The project has also garnered support from Georgia Gov. Brian Kemp (R), who announced the plans outside the Georgia State Capitol in Atlanta in December 2021.

Rivian recently received additional support from Volkswagen, with the companies forming a joint venture to develop software and electronics. Volkswagen plans to invest $5.8 billion in the joint venture and Rivian, extending their partnership announced in June.

Breitbart News reported earlier this year that Rivian was suffering serious financial difficulties:

CNBC reports that shares of electric vehicle makers Rivian and Lucid plunged on Thursday following disappointing fourth-quarter earnings reports released after markets closed on Wednesday. Rivian stock sank around 25 percent, while Lucid shares dropped nearly 17 percent.

Both companies cited stagnant production numbers and “existing economic and geopolitical uncertainties” as factors impacting results. Rivian forecasts production of 57,000 vehicles in 2024 — about the same as the 57,232 vehicles manufactured in 2023. Meanwhile, Lucid predicts production of 9,000 vehicles this year, a mere seven percent increase over 2022 levels.