Sponsored
Status
Not open for further replies.

Dwight_Schrute

Active Member
Joined
Aug 31, 2023
Threads
11
Messages
28
Reaction score
87
Location
South
Vehicles
2025 R1S DM Large+, Audi
It’s official now!

Statement from Rivian:https://downloads.ctfassets.net/2md...6/01.16.25_Rivian_DOE_Loan_Closing_Letter.pdf

DOE: https://www.energy.gov/lpo/articles...upport-construction-ev-manufacturing-facility

Source: https://www.bloomberg.com/news/articles/2025-01-16/us-to-finalize-billions-in-funding-for-rivian-plug-before-trump?srnd=homepage-europe&embedded-checkout=true&leadSource=uverify wall

January 15, 2025 at 9:17 PM EST:

The Biden administration is poised to finalize billions of dollars in financing for electric-vehicle maker Rivian Automotive Inc. and hydrogen manufacturer Plug Power Inc. before the Trump administration takes power next week, according to people familiar with the matter.

The funding, expected to be announced by the Energy Department as soon as Thursday, includes a loan guarantee of nearly $1.7 billion for Latham, New York-based Plug to construct hydrogen plants that are key to the hydrogen producer’s growth plants.

The department is also expected to announce as soon as Thursday the closing of a federal loan to Rivian for the construction of a Georgia manufacturing plant, the people said. The exact amount of the Rivian loan was not clear, but one of the people said it was in the neighborhood of the $6.6 billion conditional commitment the Biden administration made in November.

The Energy Department and the companies didn’t immediately respond to requests for comment.

Financing for the two companies comes as the Energy Department’s loan program — which effectively became a $400 billion-strong green bank during Joe Biden’s presidency — faces new threats from the incoming administration of Donald Trump, who will be inaugurated Monday.

During his first administration, Trump asked Congress to eliminate the program. This time, some in his inner circle want to get rid of or retool the Loan Programs Office to finance fossil fuels and other energy sources favored by Republicans.

Already one of the two leaders tapped by Trump to lead the so-called Department of Government Efficiency, Vivek Ramaswamy, has vowed the incoming administration will scrutinize and rescind billions of dollars in “11th-hour” Energy Department loans and singled out the $6.6 billion loan offer to Rivian.
Sponsored

 
Last edited:

zefram47

Well-Known Member
First Name
Aaron
Joined
Feb 6, 2022
Threads
16
Messages
2,412
Reaction score
3,919
Location
Denver, CO
Vehicles
Rivian R1T, Alfa Romeo 4C
Occupation
Software Engineer
Already one of the two leaders tapped by Trump to lead the so-called Department of Government Efficiency, Vivek Ramaswamy, has vowed the incoming administration will scrutinize and rescind billions of dollars in “11th-hour” Energy Department loans and singled out the $6.6 billion loan offer to Rivian.
Because that wouldn't be a massive conflict of interest with Musk part of that DoGE BS.
 

Zoidz

Well-Known Member
First Name
Gil
Joined
Feb 28, 2021
Threads
162
Messages
4,272
Reaction score
9,425
Location
PA
Vehicles
23 R1S Adv, Avalanche, BMWs-X3,330cic,K1200RS bike
Occupation
Engineer

COdogman

Well-Known Member
First Name
Brian
Joined
Jan 21, 2022
Threads
32
Messages
9,953
Reaction score
28,620
Location
Colorado
Vehicles
2023 R1T
Occupation
Dog Wrangler
Clubs
 
Actual footage of Musk hearing this news:

 

Sponsored

Donald Stanfield

Well-Known Member
First Name
Donald
Joined
Jul 31, 2022
Threads
49
Messages
6,127
Reaction score
12,120
Location
USA
Vehicles
2025 R1S Tri Ascend, 2024 i4 M50
Occupation
Stuff and things
One of the purposes of government is to help the economy by supporting job-creating projects. A domestic auto manufacturer is traditionally one of those types of companies that the government supports. Look at the big 3's auto bailouts during the Great Recession. I don't see how you can look at what happened there and think those loans were okay but this one is not.
 

nogoodpoints

New Member
First Name
Len
Joined
Dec 22, 2024
Threads
0
Messages
3
Reaction score
19
Location
Atlanta
Vehicles
R1S
One of the purposes of government is to help the economy by supporting job-creating projects. A domestic auto manufacturer is traditionally one of those types of companies that the government supports. Look at the big 3's auto bailouts during the Great Recession. I don't see how you can look at what happened there and think those loans were okay but this one is not.
I simply looks at Tesla. They wouldn't exist today, be able to scale, without the Fed's assistance/subsidies.
 

Yossarian

Well-Known Member
Joined
Oct 20, 2020
Threads
31
Messages
790
Reaction score
759
Location
SE Pennsylvania
Vehicles
R1T,Telluride, Wee-Strom, Lynskey Cooper
I've posted in the past that I was not optimistic that the Rivian loan agreement would be finalized before 20 January. I'm happy that my lack of optimism appears to have not been warranted.

The Bloomberg article seems to indicate the parties are at the finishing line, and that we may see an announcement of a formal agreement later today. I hope that's the case, but what I really hope is that the agreement between Rivian and the DOE does not contain the termination for convenience provision that is typical of USG contracts under the FAR/DFARS. I have no experience with Government loan agreements however, so perhaps my fear is unfounded.
 

Sponsored

Universe93B

Member
Joined
Dec 3, 2024
Threads
3
Messages
15
Reaction score
9
Location
Raleigh, NC
Vehicles
Audi SQ5
I was just about to post this but you beat me to it! Thankful that this loan is going through. Rivian needs help for the R2 and its construction - the R2 is what will make Rivian long-term.
 

kurtlikevonnegut

Well-Known Member
Joined
Sep 1, 2021
Threads
25
Messages
2,377
Reaction score
6,563
Location
SC/TX
Vehicles
R1T QM, Honda Odyssey
Clubs
 
I have no idea if it's feasible but I do hope that if they get this deal locked in it will allow them to expedite R2 in Normal. It's possible that the R2 line is constrained by construction timing, but my hope is that this loan would allow them to allocate additional CAPEX into this FY towards the Normal upgrades to speed it up.
 

Hillbilly

Well-Known Member
Joined
Apr 10, 2023
Threads
2
Messages
869
Reaction score
1,396
Location
Earth
Vehicles
Boat and tractor
Occupation
Hillbilly
One of the purposes of government is to help the economy by supporting job-creating projects. A domestic auto manufacturer is traditionally one of those types of companies that the government supports. Look at the big 3's auto bailouts during the Great Recession. I don't see how you can look at what happened there and think those loans were okay but this one is not.
I detest subsidies generally, but when used to prop up domestic manufacturer for long term viability (especially when the competition will be from China), I'm on board.
 

bfilippo

Well-Known Member
First Name
Benjamin
Joined
Sep 16, 2024
Threads
22
Messages
344
Reaction score
318
Location
Downeast Maine
Vehicles
Tesla Model Y, 2025 Gen2 R1T Dual Standard
Occupation
Consultant
I've posted in the past that I was not optimistic that the Rivian loan agreement would be finalized before 20 January. I'm happy that my lack of optimism appears to have not been warranted.

The Bloomberg article seems to indicate the parties are at the finishing line, and that we may see an announcement of a formal agreement later today. I hope that's the case, but what I really hope is that the agreement between Rivian and the DOE does not contain the termination for convenience provision that is typical of USG contracts under the FAR/DFARS. I have no experience with Government loan agreements however, so perhaps my fear is unfounded.
Loan agreements are typically quite a bit more difficult to get out of than other non-dilutive funding sources at federal agencies. Beyond your typical default, liquidation, etc major issues that would be in any standard lending agreement.
Sponsored

 
Status
Not open for further replies.
 





Top