Rivian’s factory pause deals fresh blow to Georgia’s crown jewel

Georgia Governor Brian Kemp has appointed himself the figurehead of Rivian Automotive Inc.’s massive $5 billion development outside of Atlanta. In 2023, the first day of March was dubbed “Rivian Day.”

Just a year later, the second-biggest economic development project in the state’s history is faltering after a surprise announcement that Rivian has halted plans to build the multi-billion-dollar factory. The news marks an abrupt reversal for the electric vehicle manufacturer and casts doubt on promises to bring thousands of high-paying jobs to the Southeast state.

It also represents a blow to Kemp’s ambitions to make Georgia a manufacturing hub for EV companies and encroach on rival states like Texas. To lure Rivian, the state and its localities offered the company $1.5 billion of subsidies including grants and land. Georgia officials maintain the deal is not dead. “This is going to be a very damning case study to unpack if this deal is kaput – and it won’t surprise me if it’s kaput,” said Greg LeRoy, founder of Good Jobs First, an advocacy group that tracks corporate subsidies.

The Rivian project’s struggles illustrate the risks of corporate handouts that states and localities have rushed to provide in the fierce race to attract large manufacturing deals that are often accompanied by lofty promises of high-paying jobs and an economic boon. The competition has intensified since the Inflation Reduction Act of 2022, which provides hefty federal investment to build battery and EV assembly plants, and has led to a surge of company pledges to boost production.