The Center Square – Georgia’s plans for an electric vehicle manufacturing facility in Social Circle have regained momentum, thanks to a proposed $6 billion loan from the U.S. Department of Energy.
Announced on Tuesday, the loan to Rivian includes $600,000 in capitalized interest, funded through the $891 billion Inflation Reduction Act of 2022.
Initially announced in December 2021, the project faced delays in March amid controversy over the $1.5 billion in incentives offered by Georgia.
The plant, projected to generate 7,500 jobs and commence operations in 2024, encountered further setbacks when a judge denied the validation of $15 million in revenue bonds.
Legal challenges from residents near the proposed site added to the uncertainty. The Michigan-based Center for Economic Accountability labeled it the “Worst Economic Development Deal of the Year” for 2022.
Despite these challenges, Rivian confirmed in a release that the project is expected to create 7,500 jobs by 2030 to support the production of its all-electric mid-size vehicles.
The facility aims to produce 400,000 vehicles annually, with the first phase of construction anticipated to be completed by 2028.
“This is in addition to 2,000 expected full-time construction jobs that will utilize the region’s significant talent and workforce to further strengthen the domestic EV ecosystem,” the release stated.
“These jobs complement the thousands Rivian has already created and plans to maintain at its current plant in Normal, Illinois, which have bolstered the local and regional economy.”
The loan is conditional upon Rivian meeting specific criteria. According to a Department of Energy news release, this funding aligns with the Biden administration’s objective of ensuring that half of all new vehicles sold in the U.S. are electric by 2030.
U.S. Senator Jon Ossoff, D-Ga., who had written to Energy Secretary Jennifer Granholm in July advocating for the loan, praised the development.
“Our federal manufacturing incentives are driving economic development across the state of Georgia,” Ossoff said.
“I join all federal, state, and local leaders in congratulating Rivian on this conditional federal loan agreement and in celebrating yet another historic federal investment in Georgia electric vehicle manufacturing.”
This announcement signals a significant boost to Georgia’s burgeoning electric vehicle industry and underscores federal support for clean energy initiatives.