Georgia Governor Brian Kemp has long aimed to position the state as a hub for clean energy manufacturing, encompassing electric vehicles (EVs), solar panels, and storage batteries. The state has aggressively offered tax incentives and developed a worker training program to lure EV and battery manufacturers, achieving notable success initially.
In 2018, Georgia-based Blue Bird began commercially selling electric buses and expanded its factory for them in 2023. Hyundai established an EV-dedicated plant near Savannah in 2022, Kia began EV production at its West Point facility in 2024, and Rivian initiated construction of its manufacturing plant near Atlanta in 2025. These ventures by Hyundai and Rivian rank among Georgia’s largest economic development projects. The state has also targeted other sectors of clean energy manufacturing, including battery and solar panel production and recycling.
However, under the second Trump administration, the economic climate for these companies deteriorated. Federal EV tax credits were eliminated, tariffs were placed on battery packs and charger hardware, emissions rules for gas-powered vehicles were loosened, and the governmental push for an electric fleet was rolled back. Additionally, a year ago, federal immigration authorities conducted a raid at an EV battery plant, arresting over 400 individuals, primarily South Korean workers involved in launching the new factory.
The past 18 months have been challenging for Georgia’s once-thriving industry, but EV manufacturers are persevering, adapting where necessary.
At Kia’s West Point plant, vehicles progress steadily along the assembly line, transforming from metal shells into complete cars. This plant operates more like a short-order cook than a traditional assembly line, producing cars to specific orders — including different models, colors, trims, or drive trains, whether gas-powered, hybrid, or electric. Currently, hybrids are in demand.
“We’ve observed a shift from full EV production to a more balanced approach,” said factory CEO Stuart Countess.
Countess believes electric cars remain the future, but factors like price and charging access are barriers for consumers. Federal policy changes also play a significant role.
“The tax incentive was crucial,” Countess noted. “Sales were promising, but once the credit disappeared, the environment changed significantly.”
As Kia increases hybrid production, Hyundai has incorporated hybrid models into its production lineup at its large Savannah plant, originally intended for EVs.
“It’s a complex period,” said Stephanie Valdez-Streaty, director of industry insights at Cox Automotive. “But manufacturers are adapting.”
Simultaneously, battery makers in the state have begun producing storage batteries for electricity alongside those for vehicles.
“Georgia’s success in both electric vehicles and the battery market is crucial,” said Stan Cross from the Southern Alliance for Clean Energy (SACE).
Georgia leads the Southeast in EV and battery manufacturing, but growth has faced setbacks, such as layoffs at SK Battery earlier this year. According to SACE, over $4 billion in investments have been canceled or reduced in the last year across the Southeast.
However, investment continues, with nearly $74 billion in manufacturing projects moving forward. The question remains whether Georgians will purchase the hybrids and EVs produced locally.
Despite efforts to boost EV manufacturing, Georgia lacks incentives for EV adoption seen in other states. An additional registration fee compensates for lost gas taxes. Political complexities extend beyond state policies and the discontinued federal incentives. “Georgia’s stance on electric vehicles is still muddled,” Cross commented.
Private investments persist, with Kia and Hyundai participating in the IONNA charging consortium, which has established several charging stations statewide, including one at Kia’s West Point site. Electric utilities are also increasing investments in vehicle charging, with a 14 percent rise in EV-related utility investment this year, according to SACE.
“Although legislative action is lacking, there is potential on the regulatory front, and we urge Georgia Power to help address the gap left by state policymakers,” Cross stated.
Valdez-Streaty anticipates that producing EVs in Georgia will eventually lead to higher local adoption.
“It’s about familiarity,” she explained. “People working in these companies are familiar with the products.”
Despite recent instability, she noted that the EV market is beginning to stabilize, and the automotive industry is still moving towards electrification, albeit gradually.
