Rivian To Build New Electric Vehicle Factory Despite Loss Of Federal Tax Credit

Although efforts to throttle back federal support for the vehicle electrification movement have been gathering steam, Georgia Governor Brian Kemp did not get the memo. EV startup Rivian’s on-again, off-again plans for a massive new electric vehicle factory in Georgia are on track again, much to the delight of the Governor. Will those plans run off the rails again? Who knows! We’ll know for sure on September 16, when a groundbreaking ceremony is reportedly scheduled to take place.

Rivian Creates 7,500 Electric Vehicle Jobs, Just In The Nick Of Time

Rivian’s new Project Horizon electric vehicle factory will add about 7,500 permanent jobs to the Georgia economy when fully up and running, churning out 400,000 vehicles per year. Rivian announced its intent to build the new facility in Georgia back in 2021 only to mothball it while working on an expansion of its Illinois factory.

Project Horizon was on again as of last November, when Rivian received a $6.57 billion conditional loan commitment from the Energy Department’s Loan Programs Office. The final approval came through on January 16 and everything was coming up roses, that is, until US President Donald Trump took office on January 20. Shortly thereafter, Trump’s Office of Management and Budget issued a memo freezing the entire loan program.

Or not, as the case may be. The memo quickly flew into the dustbin on the heels of a court challenge in February. Since then, a favored few projects have trickled through the loan pipeline, a $1.44 billion loan for the Montana Renewables alternative fuel project in Montana being one example. As with Project Horizon, the loan was issued during the Biden administration, shortly before Trump took office. However, Montana (a subsidiary of Calumet) somehow saw its loan unfrozen in March, reportedly after Republican Senator Steve Daines went to bat for the project.

So, is Rivian’s loan similarly out of the deep freeze? News reports suggest that is so. In order to access the funds, Rivian simply needs to reset the construction clock. The timeline leaves plenty of wiggle room, since the loan agreement is in effect until September of 2028. However, there’s no sense in burning daylight when both General Motors and Ford have just announced ambitious new electric vehicle plans of their own, which helps explain the rush to break ground sooner rather than later.

The site has also been graded and prepared for vertical construction over the past several years, helping to move the timeline forward.

More Green Jobs For A Deep Red State

The Rivian announcement — and the 7,500 new jobs — came at a good time for Governor Kemp. Regardless of federal electric vehicle policy, Kemp has his own political reputation to polish, and he is term-limited as of 2027. His next career move will rest partly on his job creating track record over two terms in office, which is now sitting on shaky ground due to the looming fallout from Trump’s economic policies, such as they are.

Rivian’s new electric vehicle factory will more than make up for some bad news Kemp received on August 21, when the US-based paper manufacturer International Paper announced plans to invest $250 million to revamp one of its facilities in Alabama, while permanently shutting down a containerboard mill and a packaging facility in Savannah, Georgia, as well as the Riceboro Timber and Lumber mill.

As a result, International Paper expects to axe around 1,100 hourly and salaried employees in Georgia. Not to worry, said Kemp last week. “I’ve mobilized the Technical College System, the Georgia Department of Labor, and the Department of Economic Development to connect affected workers with new opportunities,” he said in a statement released by his office.

“Thankfully, the strong state economy we’ve built together over the last seven years has made our job market healthy and resilient, with a steady pipeline of investments and opportunities coming to the regions affected by this announcement,” he added, referring to coastal Georgia.

“Since I took office, we’ve announced roughly 27,500 new jobs and $14.2 billion in investment in that area of the state, and that doesn’t include organic growth,” he added for good measure.

More EVs For The USA

For the record, Project Horizon will be located in central Georgia, near Atlanta. But, jobs is jobs. If all goes according to plan, Rivian will introduce its new electric vehicle plans to the community on September 14, with a formal groundbreaking ceremony to follow on the 16th with Governor Kemp in attendance among other officials.

Whelp, that should be interesting. Partisan politics aside, a spokesperson for Kemp’s office has told media that the Governor and First Lady “look forward to joining Rivian and state and local leaders to break ground on this next chapter in Georgia’s ongoing economic success story.”

In addition to jobs directly related to the electric vehicle factory, Kemp and his Department of Economic Development can also take credit for bringing Rivian’s new headquarters to Atlanta, beginning with 100 employees and eventually working up to 500.

Kemp announced the new headquarters on July 17, just  a few days after the Republican majority in Congress sent the all-important federal EV tax credit to an early grave. Or, perhaps the tax credit is not so important after all, at least not in the long run. On his part, Kemp did not appear ruffled.

“Georgia is a prime location for any company headquarters,” Kemp said in a press statement, adding that Rivian recognizes the “unmatched value of Georgia’s talent and the location of their East Coast Headquarters in Atlanta is the latest demonstration of their commitment to the Peach State.”

“I look forward to that commitment translating to new jobs and opportunities for hardworking Georgians,” Kemp concluded.

That’s just for starters. As with any major manufacturing venture in the US, Rivian’s long term plan includes partnership with state and local academic and technical institutions.

The Rivian restart also follows on the heels of Hyundai’s massive “Metaplant” factory near Savannah. The new factory, billed as the biggest economic development project in Georgia history, commenced initial operations last fall. When fully up and running it will employ 8,500 people and produce 500,000 electric vehicles per year including hybrids as well as full BEVs.

Photo: Rivian’s on-again, off-again electric vehicle factory in Georgia is back on track, with a $6.57 billion loan from the US Department of Energy in its pocket (courtesy of US DOE).