Rivian Automotive has secured a $6.6 billion federal loan from the Department of Energy’s (DOE) Loan Program Office to fund the construction of its new electric vehicle manufacturing facility, Project Horizon, in Georgia. The plant is expected to produce the company’s R2 and R3 EV models, create 7,500 jobs, and expand Rivian’s footprint in the competitive EV market.
“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,” said Rivian CEO RJ Scaringe. He said the funding will allow Rivian to scale production of its competitively priced vehicles, which are designed to prioritize both capability and affordability.
The decision to grant the loan has sparked sharp criticism. Jason Isaac, CEO of the American Energy Institute, labeled the loan as “corporate welfare disguised as clean energy investment,” citing the company’s backing by major shareholders, including Amazon, Ford and BlackRock, according to National Review. “Why should taxpayers shoulder the financial risk for a company backed by some of the wealthiest corporations and investors in the world?” Isaac questioned.
Rivian has faced financial struggles, including a class-action securities fraud case over alleged misrepresentation during its initial public offering (IPO). The company’s stock has lost 90% of its value since its 2021 debut.
Policy and Market Challenges
The loan comes amidst uncertainty surrounding the EV market. Demand for EVs has waned, and incoming policy changes under the Trump administration may further challenge manufacturers. President-elect Donald Trump has vowed to eliminate EV mandates and the $7,500 federal tax credit for EV buyers, a move critics argue could stifle industry growth.
Major automakers like Ford and General Motors have reported significant losses on EV investments, citing competition from China and declining consumer demand. Inflation and geopolitical instability have added further strain.
