Rivian Gets $6.6B DOE Loan Commitment for Georgia Plant Construction

[Evan1]

If my memory serves me correctly, VW is currently field testing solid state batteries (in limited/small numbers) from QS an American based company. I don't know if Rivian has a side agreement to use such battery tech in the future.

I believe Rivian will benefit from QS/VW.

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[Bullwinkle]

It’s a loan not welfare.

A fact communicated falsely by the people that know to those that don’t.

 

[Golfer04]

It’s a loan not welfare.

If you read my post I said the terms are. The government is a lender of last resort and they subsidize the terms. If they aren't why not just go to the capital markets and get the money? I've been a commercial lender for 25 years; including publicly traded companies. Categorically I can tell you the terms are well below market and the risk of loss is well above market.

 

[savethemanual]

Yes of course they are getting favorable terms, that's the point of this program. At the end of the day, Rivian has to repay and USA gets a shot in the arm of high tech manufacturing jobs and technology invested back into it's self for a modest investment of the favorable terms.

Why would Rivian just go to the capital markets and pay higher terms when programs like this exist?!?

 

[DuoRivian]

I am sure the blueprints for the new factory and contracts are already finalized. It typically takes 1 year to build a plant and perhaps another 3-4 months for testing production intent vehicles and then another 3 months to build and ship the vehicles over to you. Let's hope in early 2026.
Rivian needs these to sell and people really don't like to wait, lol.

This is an American product that Trump promised to help.

It takes much longer than one year to build a factory (paint shop and all the regulations on that alone take a while) and more than 3-4 months for test production. There is a reason why late 2027 was mentioned last year before Georgia was paused.
In China it might be a year but in the US definitely takes longer - the recent Toyota/Mazda factory in Alabama took 2-3 years.

 

[COdogman]

It takes much longer than one year to build a factory (paint shop and all the regulations on that alone take a while) and more than 3-4 months for test production. There is a reason why late 2027 was mentioned last year before Georgia was paused.
In China it might be a year but in the US definitely takes longer - the recent Toyota/Mazda factory in Alabama took 2-3 years.

Hyundai just finished their GA EV factory in 2 years and that is almost unbelievable outside of China.

https://electrek.co/2024/11/25/watch-hyundais-new-7-6b-ev-plant-go-up-just-2-years-video/

 

[savethemanual]

Correct, this factory is HUUUUUUGE as DJT would say ?. Construction goes fast but not that fast for all that goes into a facility like this.

 

[DuoRivian]

Hyundai just finished their GA EV factory in 2 years and that is almost unbelievable outside of China.

https://electrek.co/2024/11/25/watch-hyundais-new-7-6b-ev-plant-go-up-just-2-years-video/

Exactly. It is taking them well over a year to expand Normal and that doesn’t involve a new paint shop.

 

[savethemanual]

The incoming administration will do EVERYTHING possible to stop this loan.

 

[Bullwinkle]

The incoming administration will do EVERYTHING possible to stop this loan.

Hopefully the outgoing administration can offer it some kind of protection.

 

[Oldsmobile_Mike]

The incoming administration will do EVERYTHING possible to stop this loan.

What dystopian nightmare do we live in that this has become such a political football? Only idiots would oppose building a high tech, highly-skilled manufacturing plant on American soil, and employing thousands of Americans. But here we are. If that land instead becomes just another worthless strip of car washes, fast food, and Dollar Generals, we only have ourselves to blame.

 

[emoore]

If you read my post I said the terms are. The government is a lender of last resort and they subsidize the terms. If they aren't why not just go to the capital markets and get the money? I've been a commercial lender for 25 years; including publicly traded companies. Categorically I can tell you the terms are well below market and the risk of loss is well above market.

This is exactly what a government should be doing, handing out subsidized loans (just like student loans). The government isn't a for profit entity nor should it be.

 

[Zoidz]

That didn't take long

https://www.rawstory.com/biden-administration/

Vivek Ramaswamy wrote to his followers on X. “One ‘justification’ is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane.

spin doctor extraordinare.

This is exactly what a government should be doing, handing out subsidized loans (just like student loans). The government isn't a for profit entity nor should it be.

All of the world‘s large economy countries subsidize manufacturing in many ways whether it is loans, grants, etc.. China, Russia, Japan, Germany, France, Italy, etc. all do it. If the US does not, it puts us at a huge competitive disadvantage. That is part of the reason China has been eating our lunch in some industries.

 

[savethemanual]

Yes, and there are many who believe his simple spin on the numbers....he's basically saying the $6.6B is a handout and not a loan that will be paid back. Wow.

 

[mkhuffman]

What dystopian nightmare do we live in that this has become such a political football? Only idiots would oppose building a high tech, highly-skilled manufacturing plant on American soil, and employing thousands of Americans. But here we are. If that land instead becomes just another worthless strip of car washes, fast food, and Dollar Generals, we only have ourselves to blame.

That is not what is happening.

It isn't opposition to high tech, highly-skilled manufacturing. It is opposition to government manipulating the free market. It is opposition to taking money from those who cannot afford to buy a Rivian and giving it to Rivian to build what they cannot buy. It is opposition to our skyrocketing national debt.

All of the world‘s large economy countries subsidize manufacturing in many ways whether it is loans, grants, etc.. China, Russia, Japan, Germany, France, Italy, etc. all do it. If the US does not, it puts us at a huge competitive disadvantage. That is part of the reason China has been eating our lunch in some industries.

This is a good point and provides a reasonable argument for implementing tariffs on countries that are doing that.

If a country is artificially propping up their industries, then we can artificially make them more expensive to sell here. When they get rid of their interference in their own free market, we can open up free trade with them and eliminate the tariffs. That is what I would do instead of just repeating their mistakes by messing with our free market economy.

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