Abdul Latif Jameel-backed Rivian finalized a USD 6.6 bn federal loan agreement with the Biden administration to support plans to build a manufacturing plant in Georgia, according to a statement. Construction is set to begin in 2026 and production will commence in 2028.

The details: The loan will be divided across the plant’s planned two phases, with options for advances. The first phase would see a financing of up to USD 3.4 bn, while the second phase could release funds up to USD 2.6 bn. Both figures do not include capitalized interest.

REFRESHER- Rivian plans to build the production facility in two phases with a 200k annual production capacity each. Phase 1 is set to begin production in 2028. The plant will be located at Stanton Springs North, Georgia state, and is expected to generate 7.5k jobs once operational.

Could the financing be reversed by Trump? Big republican names like Vivek Ramaswamy, one of the two candidates tapped to lead the Department of Government Efficiency, have vowed to scrutinize and reverse last-minute loans, specifically targeting the commitment to Rivian. However, Biden officials appear confident that most finalized financing will be safe. “When funds are obligated, they are protected ... They are subject to the terms of the contract, so when those contracts are signed and executed, this becomes a matter of contract law more than a matter of politics," Biden’s climate advisor John Podesta told Reuters last month.

ICYMI- The luxury EV maker major backer Volkswagen raised its investment by 16% to reach USD 5.8 bn last November to support a joint venture between the two companies that would focus on software-defined vehicle platforms.

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