Biden administration seeking to finalize $6.6B loan to build EV factory before term ends
The Biden administration is making moves to provide a substantial federal loan to support the development of a large-scale electric vehicle manufacturing plant just before the end of President Biden’s term. The Department of Energy recently announced a $6.57 billion loan for Rivian Automotive, an electric vehicle manufacturer, to facilitate the construction of a massive 9 million-square-foot electric vehicle facility in Georgia, known as Project Horizon.
This initiative aligns with the Biden-Harris Administration’s goal of having half of all new vehicles sold in 2030 be zero-emission vehicles. However, with the incoming administration under President-elect Donald Trump, this target may face challenges and potential revision.
President Biden has been actively allocating billions of dollars towards climate-related projects across the country in a bid to solidify his legacy on environmental issues during his final months in office. The proposed facility in Stanton Springs North, Georgia, has the capacity to produce up to 400,000 mass-market electric SUVs and crossover vehicles.
Before the deal is finalized, Rivian Automotive must meet specific technical, legal, environmental, and financial requirements as stipulated by the Department of Energy. The clock is ticking, with only two months left for the White House to seal the deal before the Trump administration takes over and could potentially disrupt plans that do not align with its agenda.
The funding for this project will be provided by the Biden administration’s Loan Programs Office (LPO), with $5.975 billion allocated for principal and $592 million for capitalized interest. This significant investment underscores the administration’s commitment to bolstering the nation’s manufacturing competitiveness and ensuring that American businesses remain at the forefront of the rapidly expanding electric vehicle industry.
Overall, this move signifies a strategic investment in the future of sustainable transportation and manufacturing, with the potential to drive innovation and economic growth in the electric vehicle sector. As the transition of power looms on the horizon, the fate of Project Horizon and its implications for the electric vehicle industry remain uncertain. It is a pivotal moment that could shape the trajectory of electric vehicle development and adoption in the United States.
By Aubrie Spady, Writer for Fox News Digital
