Since President Donald Trump took office last month, many proposed policy changes have been batted around and in some cases implemented – several of which pertain to the automotive industry, specifically. One such proposed change revolves around federal loans and other funds designated for electric vehicle infrastructure and future EV plants, as Trump has reportedly been mulling the idea of killing off many of these incentives. For now at least, such a move doesn’t seem likely to impact at least some future Ford EV plants, but it could cause financial headaches for one of its rivals, Rivian.
According to WSB TV, it’s possible that Rivian may not receive the $6.57 billion dollar federal loan it was granted under the previous Biden Administration that was slated to help it erect a new production facility near Madison, Georgia. Rivian has stated that it’s ready to restart construction at the site, but its plan is now in limbo after Trump opted to freeze those federal loans.
“You know, they secured that loan at the tail end of the Biden administration and, you know, I think there’s no secret that the Trump administration is taking a look at all those things,” said Georgia governor Brian Kemp. “So I don’t really know where that stands right now. We got parameters in, and whether it’s the incentives, the side itself to protect taxpayers regardless of what happens with that side. Rivian keeps telling us they’re coming and, you know, we’re taking them for their word at that.” Despite this, Rivian remains. confident that it will receive the funds, with a spokesperson stating that “We’re working hard to onshore U.S. manufacturing, providing thousands of American jobs here in Georgia.”
As for Ford, its joint-venture with South Korean battery manufacturer SK On – BlueOval SK – finalized its own $9.63 billion dollar loan with the the U.S. Energy Department back in December, and according to Kentucky Governor Andy Beshear, those funds have already been distributed, meaning that the project will continue, regardless. However, Ford CEO Jim Farley previously stated that the future of EV plants, in general, is greatly dependent on those federal funds.
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The state of Georgia spent millions of tax payer dollars to purchase a large tract of land, install roads, drainage/water management, utilitis, clearing and grading, all in anticipation of Rivian building this plant. Today, there is a scalped, wide open piece of land sitting in wait. Big question, if Rivian can’t pull off building their huge plant, what’s to become of this property that Georgia has spent millions on? I’m a tax payer in Georgia and would like to know.
Trump is reversing anything that he can that Biden did. Also, stopping this plan is good for Elon Musk because it stops some competition for Tesla. The conflict of interest is apparently irrelevant.
Taxpayers should not subsidize EV automakers. Only 7.3% of total vehicles sales in 2024 were EVs.