Rivian Emerges Victorious As Trump’s War On EVs Flops

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US President Donald Trump swept into office last year on a mission to nip the vehicle electrification movement in the bud. Why? Who knows! Like all things Trump, however, the effort has been half-baked and ultimately ineffectual. Though the damage has been considerable, the domestic EV charging industry is already geared up for a rebound and the robotaxi field is providing a shot of adrenaline, and now comes word that the US Department of Energy is lending Rivian up to $4.5 billion to manufacture 300,000 EVs per year in the deep red state of Georgia … wait, what?!?

Why, Exactly, Is The US Department Of Energy Spending $4.5 Billion On EVs?

The big question is what strings were pulled to squeeze a generous $4.5 billion funding package for EVs out of the Energy Department, at a time when Trump and his minions are determined to uplift fossil fuel stakeholders at the expense of everyone else.

That’s a good question. Part of the answer is Georgia, where Republican Governor Brian Kemp has thrown out the anti-EV playbook in favor of an EV-centric economic development policy.

Kemp hasn’t exactly been shy about it, either. When Rivian selected Georgia for its new factory in 2021, Governor Kemp staged an elaborate celebratory event for the media alongside Rivian execs.

“We are so proud that Georgia will now be home to Rivian’s largest manufacturing facility,” Kemp gushed. “This single investment — the largest in state history — represents the future of automotive manufacturing and establishes the leading role the Peach State will play in this booming industry for generations to come.”

Tooting his own horn, Kemp also referenced his focus on vehicle electrification and related industries, to create a powerful economic development engine that has “equipped our state with a new tool in the tool box to deliver big wins for hardworking Georgians.”

No kidding. As announced, Rivian would create 7,500 new jobs at its new campus in Georgia, along with 2,000 construction jobs and another 8,000 indirect jobs, while pumping a $5 billion investment into the state. The investment package also included a soup-to-nuts workforce training program.

Political Protectionism

Everything was going according to plan until the early months of 2024, when Rivian announced a delay. Kemp reaffirmed his support for the company, and later that year the Energy Department came through with a $6.5 billion conditional loan to Rivian, enabling progress to continue. The  award was announced in November of 2024, shortly after Trump won re-election. However, Former President and EV fan Joe Biden was still in charge at the time, so no surprises there.

Also to the surprise of no-one, after Trump took office last year he began clawing back, canceling, and/or suspending billions in Biden-era financial support for EVs and other clean tech.

Somehow, Rivian escaped the chopper. On September 16 last year, both Kemp and Virginia First Lady Marty Kemp, along with other dignitaries, attended a formal groundbreaking ceremony at the site of the new Rivian factory.

“Today is another milestone in bringing quality, good-paying jobs to Georgians in this part of the state,” Kemp said in a press statement.

Thoughts? Drop a note in the comment thread. One factor in play is political protectionism, of the sort that enabled the massive Coastal Virginia Offshore Wind project to move forward unimpeded last year while the Republican Governor of Virginia, Glenn Youngkin, was still in office.

Certainly Trump would not embarrass Georgia Governor Kemp by abruptly pulling the financial plug on his signature economic development project. However, the protectionism factor only holds up as long as a Republican is in office, and Kemp is term-limited this year. On Election Day 2026, the Governor’s office will be open to competition from a Democratic candidate as well as a Republican candidate. A Democratic win could spell trouble for Rivian. Take another look at Virginia, where Trump finally tried to stop the CVOW project several weeks after Election Day 2025, when term-limited Youngkin was replaced by the Democratic candidate for Governor, Abigail Spanberger.

Keeping A Red State Red

Regardless of all that, the newly announced Energy Department funding does indicate that the Rivian project is safe no matter which party gets the keys to the Governor’s Mansion in November. Kemp, obviously, would prefer the seat to stay in Republican hands. One can imagine Kemp hustling himself up to Washington, charts and public opinion surveys in hand, to demonstrate that monkey-wrenching the 2024 Rivian loan would be a bad look for Republicans in the run-up to the 2026 midterm elections this November.

And so, whoever the Democratic candidate for Governor is, they will not get an opportunity ride into victory on the skirts of EV dreams deferred and thousands of jobs down the drain. On April 30, Rivian announced that the initial phase of construction at its Georgia factory will be supported by an Energy Department loan of up to $4.5 billion, consisting of $4,006 million principal and $494 million capitalized interest.

With the funds in hand, Rivian also plans to increase manufacturing capacity at the facility by 50% from the original plan. The new goal is to pump out 300,000 EVs annually. “The company remains on track for vehicle production to begin in late 2028,” Rivian noted.

Preliminary work at the site is already under way and Rivian expects to begin vertical construction this year. “Preparations are underway for the development of the stamping press area, one of the most capital-intensive and technically demanding projects within the plant from a construction perspective,” Rivian adds.

Rivian also affirmed that it plans to manufacture up to 50,000 robotaxis at the Georgia facility, under a recently announced partnership with Uber.

“We’re very excited to partner with the U.S. Department of Energy to grow our manufacturing footprint in Georgia,” enthused Rivian Founder and CEO RJ Scaringe in a press statement announcing the $4.5 billion loan, giving credit where credit is due.

“The thousands of dedicated people who will soon work in our Georgia plant will be instrumental to Rivian’s growth as we scale American manufacturing and work to ensure that the U.S. retains its leadership in innovation and technology,” Scaringe added, emphasizing the job creation angle.

Electrification fans are also looking forward to volume production of Rivian’s lower-priced R2 at the company’s manufacturing facility in Normal, Illinois, where the maximum capacity is 215,000 vehicles per year. Word is that some R2’s will also be manufactured at the Georgia facility. In a press statement last year, Rivian affirmed that its midsize, 5-seater R2 SUV and R3 crossover will be manufactured in Georgia. The company also indicated that Phase I plans for the new facility call for an output of 200,000 EVs per year, with Phase II eventually adding another 200,000 for a total of 400,000.

Photo: The US startup Rivian has secured a $4.5 billion loan from the US Department of Energy, in support of its plans for producing EVs at scale in Georgia in 2028 (cropped, courtesy of Rivian).