Gov. Brian Kemp set out about five years ago to make Georgia the “e-mobility capital of the world.”
In that time, Georgia has emerged as not only an e-mobility hub, but a clean technology giant. The state has recruited a pair of multibillion-dollar electric vehicle plants, dozens of parts suppliers to support those factories and several facilities across the battery supply chain.
Georgia has also benefited from huge incentives pushed by President Joe Biden to expand EVs and clean technologies, while state and local leaders have offered up their own bevy of incentives to woo companies.
Georgia ranks second behind North Carolina for most EV industry investment since Biden’s landmark climate and health care law, the Inflation Reduction Act, was adopted in 2022, according to nonpartisan group E2.
Still, EV sales growth hasn’t happened as fast as many bullish predictions.
New plug-in vehicle sales had a sluggish start to 2024, with consumers citing range anxiety and a lack of public charging options for their hesitancy. But sales rebounded by midyear, as legacy automakers — aside from EV pioneer Tesla — saw their market share grow.
Georgia’s EVs journey is about to take its biggest step. The state’s largest economic development project, Hyundai Motor Group’s $7.6 billion plant near Savannah, is already producing test vehicles and could begin full-scale production as soon as October. Hyundai is also considering adding hybrid vehicle production in Bryan County as a bit of a hedge.
But development of a planned $5 billion Rivian EV factory an hour east of Atlanta was paused six months ago, and a restart date hasn’t been announced. Industry observers are hopeful a recent partnership with Volkswagen Group and promising reservation figures for Rivian’s future crossover will help ensure the factory moves forward.
Credit: Ben Hendren
Credit: Ben Hendren
Pat Wilson, the state’s top economic development official, said speed bumps are to be expected, but he said the potential of the industry — and the change it’s already creating across Georgia — justifies the amount of energy put into recruiting these projects.
“None of us really knew where the industry was going and how quickly it was going to move,” Wilson said. “It’s an exciting time to be doing what we’re doing in Georgia because we are on the forefront of these technologies that are going to take us into the future.”
The fast-evolving and climate-friendly technologies represent what Wilson often calls a “new industrial revolution” — one where the majority of the promised investments and jobs are landing outside of metro Atlanta.
“What started with a conversation talking about the future of an industry is now leading to the health and future of rural Georgia and communities all over the state,” Wilson said. “That’s a pretty exciting trajectory to see.”
Driving change
The impetus for Kemp’s focus on clean tech was a trip to Germany in early 2020.
The Republican governor, then in his first term, met with Mercedes-Benz and Porsche. But instead of gas-powered technologies, the automakers focused discussions on EVs.
“If you have two automakers who have basically built their entire reputation on the creation of the internal combustion engine and all they’re talking about is electrification, then we need to be aiming in that direction too,” Wilson said Kemp told him after meeting with the companies.
Credit: Miguel Martinez
Credit: Miguel Martinez
At the time, Georgia had one major EV player: SK.
SK Group, a South Korean conglomerate, opened a massive lithium-ion battery production facility near Commerce, which has grown to employ thousands. SK and Hyundai broke ground last year on a $5 billion battery plant in Bartow County, which is on track to open by the second half of 2025.
Since 2018, Georgia has announced 53 EV and battery projects that combine for $27.3 billion in investment and more than 32,000 anticipated jobs, according to the Georgia Department of Economic Development.
Different timelines
Announced mere months apart, the Hyundai and Rivian projects have moved at different speeds.
Hyundai’s “Metaplant” in Bryan County, announced in May 2022, is already producing test vehicles. It has so far attracted a network of 17 suppliers, which combine for another $2.7 billion of investment, some of which have already opened. On Sept. 5, state leaders gathered in rural Liberty County to celebrate the opening of Seohan Auto Georgia, which develops axles and brake systems.
Credit: Courtesy Georgia Department of Economic Development
Credit: Courtesy Georgia Department of Economic Development
Rivian’s timeline has been significantly delayed. Originally announced in December 2021 and slated to open in 2024, the 2,000-acre factory site has been cleared and infrastructure around the site in southern Morgan and Walton counties has been built. But construction was indefinitely paused in March.
Rivian recently partnered with a local farmer to use some of the idle land to grow and bale hay.
Rivian says it will build the factory that’s promised to employ 7,000 workers after it launches a new crossover model called the R2, which is expected in 2026. The new vehicle, which has a significantly cheaper sticker price than the company’s flagship R1 line, is Rivian’s attempt to widen its customer base and scale into a profitable automaker.
Production of the R2 is now planned to start in Illinois, but shift to Georgia as Rivian builds scale. The company has said it will save more than $2.2 billion by delaying the Georgia factory.
“Rivian and its partners continue to work actively at the site to ensure its readiness for a rapid transition to vertical construction when the time is right following launch of R2,” the company’s statement said.
Credit: Miguel Martinez
Credit: Miguel Martinez
The Joint Development Authority of Jasper, Morgan, Newton and Walton counties, the local government agency that’s overseen the Rivian project, added that the company continues to make required payments as part of the state’s incentive agreement. The JDA also said Rivian has been “making meaningful improvements to its site and implementing the agreed-upon site maintenance measures.”
‘We’re moving with them’
The pause sparked criticism among some of Georgia’s elected officials, but Kemp’s camp has reiterated its confidence that Rivian will be able to deliver the factory it promised. The startup in June announced a potential $5 billion technology partnership with Volkswagen Group, and Rivian’s leaders aim to enter the green by this year’s fourth quarter.
That partnership is expected to create new revenue streams for Rivian, create capital for expansion and help Rivian lean on Volkswagen’s manufacturing prowess, the companies have said.
“Rivian is a great example of a company that has an amazing product, and they’re really learning how to manufacture,” Wilson said. “They’re moving in the right direction, and we’re moving with them.”
The state’s large e-mobility projects received large packages of property tax breaks and other incentives from state and local leaders. The packages for Rivian and Hyundai far eclipsed $1 billion each.
Wilson said those companies don’t receive the benefits of those incentives unless they deliver on their promises to build their massive factories and employ thousands of Georgians, which he said “protects the taxpayer.”
Wilson said the state isn’t shying away from clean tech projects going forward, but the days of announcing multibillion-dollar projects every few months are likely over. Instead, the next wave of projects will likely be smaller endeavors to assist and supply the state’s e-mobility ecosystem.
“Those are generational investments,” Wilson said. “There are only so many of those out there.”
Cox Enterprises, owner of The Atlanta Journal-Constitution, owns about a 3% stake in Rivian.
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