The U.S. Department of Energy has given final approval to electric vehicle maker Rivian for a loan expected to be worth $6 billion to support its stalled Georgia factory, two people with direct knowledge of the matter said Thursday, a huge infusion of cash intended to ensure the plant gets built.
The DOE is expected to announce publicly that the agreement has been finalized as soon as this afternoon, the two people said. Both spoke on condition of anonymity because they were not authorized to speak publicly on this sensitive matter.
News that the loan is expected to be announced as soon as Thursday was first reported by Bloomberg, also citing unnamed persons.
The loan, which comes days before President Joe Biden exits the White House, will provide Rivian with the financial backing to build its plant in southern Morgan and Walton counties, roughly an hour east of Atlanta. The $5 billion project was first proposed in late 2021 and was initially supposed to open in 2024, but delays mounted as the upstart automaker slogged through supply chain issues and other challenges.
A message seeking comment from Rivian was not immediately returned.
Rivian put construction on pause last March as the California-based automaker enacted a cost-cutting plan. But Rivian CEO RJ Scaringe has said the automaker would deliver on its promise to create 7,500 jobs at the Georgia plant by the end of this decade.
DOE announced preliminary approval of the funds in late November.
The completion of the agreement was among many 11th-hour actions expected from the Biden administration in its final days. But the loan has received heightened attention because allies of President-elect Donald Trump, including entrepreneur Vivek Ramaswamy and House Speaker Mike Johnson, have expressed support for clawing back the funding.
Along with Elon Musk, the billionaire CEO of Rivian rival Tesla, Ramaswamy has been tapped by Trump to colead a new Department of Government Efficiency, or DOGE, which has pledged dramatic cuts to federal programs, including funding for electric vehicles.
Cox Enterprises, the owner of The Atlanta Journal-Constitution and Cox Automotive, also owns a 3% stake in Rivian.
— This is a breaking news story and will be updated. Return to AJC.com for updates.
