Georgia officials are in discussions with Rivian to maintain the site of its planned $5 billion electric vehicle plant after the company abruptly scrapped its efforts to save money.
State leaders have contacted Rivian to remind the company of its contractual obligations to control stormwater runoff, stabilize graded land and secure the site in Social Circle, Georgia, the Atlanta Journal-Constitution reported, citing documents it obtained. The state gave Rivian a $1.5 billion incentive package in 2022 to persuade the company to pick Georgia over other states for the proposed plant.
EV sales at Tesla and other automotive manufacturers have slowed because of the vehicles’ high sticker price, elevated interest rates that make car loans more expensive and a lack of publicly accessible charging networks. Ford and General Motors have joined Rivian in delaying the construction of EV manufacturing sites to stall for time in the hopes that EV demand rebounds.
Rivian said it will abide its obligations under the terms of its Georgia state incentive package, including site management and security, according to a company spokesperson. The company will comply with all federal and state regulations with respect to environmental matters and will work in coordination with the state Environmental Protection Division.
Rivian told the state in an April 18 letter that it will “fully stabilize the lower pad while continuously improving the upper pad area” and it will also begin the installation of “signage, fencing, gating and access control measures” on the site.
“These concrete actions demonstrate our continued commitment to the State and people of Georgia as we look ahead towards construction of our future facility,” Rivian chief policy officer Alan Hoffman said in an emailed statement.
Rivian halted work last month at the Georgia construction site. The Georgia facility was intended to be where Rivian would manufacture a planned new SUV model, but instead the company will make the vehicle at its Normal, Illinois, facility.
Some Georgia lawmakers are exploring ways to punish Rivian for suspending construction of its plant, including the repayment of some incentive money it’s already received, according to the Atlanta Journal-Constitution. Many of the financial incentives won’t be delivered to Rivian until after the facility is completed and workers are hired.
But the group of Georgia lawmakers that oppose Rivian criticized the state's Department of Transportation for building a $91 million interchange on Interstate 20 to service the Rivian plant, saying the facility may never open.
Rivian risks getting left behind by rival automakers that continue to build new manufacturing facilities. Hyundai is constructing an EV and lithium-ion battery manufacturing facility near Savannah, Georgia. And Toyota recently boosted the size of its EV battery plant under construction near Greensboro, North Carolina.