President Joe Biden's administration has approved a massive $6.6 billion loan to help a Tesla rival company expand its US operations.
The loan from the US Department of Energy will aim to bring more business in and support the industry in developing fuel-efficient vehicles.
It is part of the Advanced Technology Vehicles Manufacturing Loan Program.
This program has previously helped finance projects like EV battery factories as well as the production of the Tesla Model S and the Nissan Leaf.
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Now, it’s Rivian’s turn.
Amazon founder Jeff Bezos is the largest shareholder of Rivian after investing $700 million into its growth. Now with the help of government funding, the company plans to build a factory in Georgia to ramp up production.
However, whether Biden can complete the loan before Donald Trump reclaims the presidency is uncertain. After a landslide victory over the Democrats, Trump is expected to return to the White House in just a matter of weeks with plans for the future.
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Rivian began trading in 2009 as an electric vehicle company, six years after Tesla began its journey as Tesla Motors in 2003.
Only recently did Rivian recently announce a partnership with Volkswagen to produce an electric Ford. However, this type of cash would do wonders for the company and could transform the automobile industry.
Though things could pan out differently as Trump has appointed Tesla CEO Elon Musk to his team.
Not to mention that Trump previously agreed that he would want to end federal electric vehicle tax credits, which cost up to $7,500 for new zero-emission vehicles and also $4,000 for used ones.
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Rivian has faced some challenges along the way. While it created its electric R1 SUVs in 2021 - and plans to build a $5 billion plant in Atlanta - the company struggled to meet demand for its planned R2 vehicles.
Several production delays and financial hurdles forced Rivian to pause its Georgia plans and shift focus to its Illinois plant.
Thankfully, Volkswagen said it would invest $5 billion in Rivian, helping to stabilise the company. The collab would also allow both companies to share software and electrical technology as they collaborate on the new electric Ford.
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Democratic U.S. Sen. Jon Ossoff, who asked Energy Secretary Jennifer Granholm to support the loan in July, praised the loan, saying it was ‘yet another historic federal investment in Georgia electric vehicle manufacturing’.
He added in a statement: “Our federal manufacturing incentives are driving economic development across the state of Georgia.”