As part of the Biden-Harris Administration’s Investing in America agenda, the Department of Energy’s (DOE) Loan Programs Office (LPO) announced on Jan 16 the closing of a $6.57 billion loan ($5.975 billion of principal and $592 million of capitalized interest) to Rivian New Horizon, LLC to finance the development and construction of Project Horizon, an electric vehicle (EV) manufacturing facility located in Stanton Springs North, near the City of Social Circle, Georgia. The project is owned by a subsidiary of Rivian Automotive, Inc. (and is supported by an equity investment from the company). Today’s announcement reinforces the Biden-Harris Administration’s commitment to strengthening the nation’s manufacturing competitiveness, helping ensure American businesses remain global leaders in the rapidly expanding EV industry. Rivian submitted its application to LPO in October 2022.

The loan will support the construction of a nine million square foot facility to manufacture up to 400,000 mass-market electric sport utility vehicles (SUVs) and crossover vehicles annually, boosting the regional economy and helping build America’s clean transportation future. 

The announcement reflects a material increase in domestic EV manufacturing to support the rapidly growing U.S. EV market, which saw a 12% increase in sales in the final quarter of 2024. At its Georgia facility, Rivian will produce its all-electric midsize platform (MSP) with its R2 and R3 models as the first variants in production. Rivian currently produces its three-row electric SUV, the R1S, and its electric pickup truck, the R1T, as well as commercial vans at its Normal, Illinois, facility. Rivian’s Georgia facility will allow the company to reach production volumes that make its products more cost competitive and accelerate access to international markets. At full capacity, the EVs manufactured at the facility are expected to yield an annual fuel savings of approximately 146 million gallons of petroleum.    

The loan is made available through LPO’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans to support U.S. manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy. The loan would mark the first ATVM loan under the Biden-Harris Administration to produce advanced technology vehicles (ATVs), rather than ATV components. 

This project expects to support up to 2,000 full-time jobs through construction and 7,500 operations jobs through 2030, adding to the nearly 16 million jobs created since President Biden and Vice President Harris took office. LPO borrowers are required to develop and ultimately implement a comprehensive Community Benefits Plan (CBP). CBPs ensure borrowers meaningfully engage with communities and labor groups to create good-paying jobs and improve the well-being of residents and workers. As outlined in its CBP, Rivian intends to hire at least a quarter of its employees at the Stanton Springs facility from the local community. This investment supports the Biden-Harris Administration’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal investment in climate, clean energy, and other areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

President Donald Trump made moves on his first day in office limiting the adoption of some kinds of renewable energy and related products, including electric vehicles. That could slow or dampen construction of these types of projects. 

Trump also ordered agencies to pause disbursement of Infrastructure Investment and Jobs Act and Inflation Reduction Act funds for EV charging stations.

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For more information, visit our website or email us at info@innovatrix.eu for the event agenda. 

Source:

Department of Energy