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captainjp

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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.

Boom.
Waiting for the negative twists…
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carancpa

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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.
 

carancpa

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Thank God! Of course Muscrat will try to stop it....he got billions in Federal and State backed money, but God forbid if someone else needs or wants that money.
 

Zoidz

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He made it pretty clear that he's going to do everything possible to hurt the EV industry and support oil & gas.
Trying to keep it non-political and focus on policy - the reality that I have been reading for months, from multiple news sources, is that the oil industry really doesn't care/want/need the emerging "Drill Baby Drill" policy.
 

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Trying to keep it non-political and focus on policy - the reality that I have been reading for months, from multiple news sources, is that the oil industry really doesn't care/want/need the emerging "Drill Baby Drill" policy.
Why though? Seems like it would be good for them, no?
 

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SANZC02

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Why though? Seems like it would be good for them, no?
Not really, we are already producing the most in history. It is a finite source, when there is a glut on the market prices are lower. It is actually better for the industry to moderate the availability of the resource, they make more money and extend the reserves.
 

Zoidz

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Why though? Seems like it would be good for them, no?
As @SANZC02 mentioned, we are producing at very high levels and demand is flat.

"They predict the biggest obstacle Trump will face in his widely publicized plans to expand oil and gas production, including fracking, is not the opposition of Democrats or environmentalists, but simple supply-and-demand economics.

Oil and gas prices in the U.S. are already relatively low as production hit record levels under the Biden Administration. Domestic natural gas production has risen to over 96 cubic feet per day — enough to fill one million Olympic-sized swimming pools — and Texas produces more than any other state, 24.6% of this total as of 2022.

Prices are projected to fall further over the next five years, barring any major changes in ongoing geopolitical conflicts. Because of this, companies are unlikely to increase production unless there’s a big increase in demand, according to Carolyn Kissane, associate dean of the Center for Global Affairs at New York University.

“In some ways, I think the ‘drill, baby, drill,’ is old,” Kissane says. “It’s already happened or happening, and so the next administration comes in confronting a market that doesn’t necessarily need more supply.”



Also, the "Drill Baby Drill" assumption totally misses out on an important factor - type/quality of oil (Light/Heavy, Sweet/Sour) and refining capacity. From what I have read, refineries are built for a specific type of crude. What good is "Drill Baby Drill" if we can't process the crude into useful products?

"The Paradox of U.S. Oil Production
The reason the U.S. can’t fully utilize the oil it produces boils down to a mix of economic, infrastructural, and geopolitical factors. The types of oil produced domestically don’t always match the needs of U.S. refineries, and the global nature of the oil market means that supply and demand dynamics play out on an international scale. While the U.S. is one of the top oil producers in the world, it remains a participant in a global oil ecosystem that involves both importing and exporting oil for maximum efficiency.

This paradox highlights the complexity of modern energy markets and the challenges the U.S. faces in navigating its role as both a major oil producer and consumer. As the world continues to evolve toward cleaner energy sources, the dynamics of oil production, consumption, and trade will remain a central focus of U.S. policy and global economics."
 

elektrode

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“We have always been at war with Eastasia.”

What is said, promised, advertised, and made policy does not have to agree with reality.
 

R1Thor

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savethemanual

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I'm confident the loan was set up so it can't be canceled, they knew Trump was going to stop it if he can.

I'm concerned with the Fed tax credit on new EV's that qualify, Rivian and others need it yet for growth of the industry. If anything, take away the lease loophole. Oh, and to those that are against the credit....then take away ALL subsidies to really keep things fair, and then lets see how folks like filling up with $7 a gallon gas.
 

R1Thor

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I'm confident the loan was set up so it can't be canceled, they knew Trump was going to stop it if he can.

I'm concerned with the Fed tax credit on new EV's that qualify, Rivian and others need it yet for growth of the industry. If anything, take away the lease loophole. Oh, and to those that are against the credit....then take away ALL subsidies to really keep things fair, and then lets see how folks like filling up with $7 a gallon gas.
What 'can' and 'can't' happen seem to be... illusions.

It's almost like laws in this country aren't as concrete as they used to be... but that's just like, my observations as of recent.

That said, I REALLY hope you're right (all of the dominoes are already toppling and cannot be untoppled), for Rivian's and society's sake.
 

Donald Stanfield

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I will bet the "drill baby drill" is lip service. As previously mentioned, the fossil fuel industry doesn't need any help. They aren't planning on raising production as demand has been flat. Boosting production is cutting off big oil's noses to spite their face, and they aren't in a rush to do so.

So the "we are going to drill" agenda means the incoming administration doesn't have to do anything. It's what the people who voted for him want to hear, and he doesn't have to do anything to make it happen.
 

Jonger1150

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I will bet the "drill baby drill" is lip service. As previously mentioned, the fossil fuel industry doesn't need any help. They aren't planning on raising production as demand has been flat. Boosting production is cutting off big oil's noses to spite their face, and they aren't in a rush to do so.

So the "we are going to drill" agenda means the incoming administration doesn't have to do anything. It's what the people who voted for him want to hear, and he doesn't have to do anything to make it happen.
As the world transitions, it will be important that production doesn't exceed demand by much or else prices will drop below profitability. There's no emerging market for oil, everyone is transitioning.
 

Donald Stanfield

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As the world transitions, it will be important that production doesn't exceed demand by much or else prices will drop below profitability. There's no emerging market for oil, everyone is transitioning.
Excellent point. This is the reason why we subsidize farming. The price would drop below profitability without subsidies thanks to modern farming technology and crop yields. We don't need another industry to subsidize.
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