Vivek Ramaswamy—who will head up a new Department of Government Efficiency (DOGE) alongside Elon Musk—said the U.S. Department of Energy’s (DOE) $7.5 billion loan proposal to StarPlus Energy LLC announced on Monday should be revoked.
“Biden’s midnight spending spree is illegitimate and should be rescinded,” he wrote.
“DOGE will carefully scrutinize every one of these questionable 11th-hour transactions, starting on Jan 20.”
He said that the money will come from the Advanced Technology Vehicles Manufacturing (ATVM) loan program, which he noted was criticized by the Government Accountability Office (GAO) in 2014 for being duplicative.
Ramaswamy said the Biden administration expanded the ATVM under the Inflation Reduction Act, leading to $55 billion in loans being wasted.
The facilities are projected to produce about 67 gigawatt-hours of batteries annually—enough to power approximately 670,000 electric vehicles each year. The initiative is expected to create around 3,200 construction jobs and up to 2,800 permanent operations positions, according to the DOE.
The DOE stated that the move aligns with the current administration’s goal to enhance the U.S. electric vehicle industry and reduce reliance on foreign battery sources, particularly from countries like China.
“The output from the new facilities will be sold to Stellantis for use in electric vehicle models that will be sold in North America, helping ensure the United States can meet domestic demand and remain a global leader in the rapidly expanding EV industry,” the department said on Monday.
Rivian, founded in 2009 and backed by major investors like Amazon and Volkswagen, has struggled financially. The company plans to manufacture sport utility vehicles and hatchbacks at its new factory near Social Circle, Georgia, and production isn’t expected to start until 2028.
The DOE said the loans would boost job creation and advancements in energy technology. The loans are part of a broader effort to support domestic manufacturing and reduce greenhouse gas emissions, according to the agency.
Previously, the Obama administration loaned $465 million to Tesla to fund the production of its Model S electric vehicle. Three years later, Tesla repaid the loan ahead of schedule.
Tesla CEO Elon Musk, who is poised to lead DOGE alongside Ramaswamy, is more critical of government subsidies for EV manufacturing and energy production.
