US electric vehicle manufacturer Rivian may no longer have access to an incentive package offer to build a $5 billion plant in the US state of Georgia, Kallanish reports.

On 29 September, Morgan County Superior County Judge Brenda Trammell rejected the agreement between the Joint Development Authority (JDA) of Jasper, Morgan, Newton, and Walton counties and Rivian. The parties had requested the validation of taxable revenue bonds in the amount of $15 billion to finance the costs associated with Rivian’s proposed EV plant on land located in Walton and Morgan counties.

A decision seen by Kallanish says the “JDA failed to establish that the bonds and project are sound, feasible, and reasonable,” in addition to proving the project would “promote the general welfare of the local communities within its territory.”

The JDA and the Georgia Department of Economic Development said on Monday they are currently assessing all legal options.

“We remain undeterred in our efforts to bring high-paying, American manufacturing jobs to Georgia,” they say in a joint statement.

A spokesperson for the Georgia Department of Economic Development adds: “As the entire country is looking to revitalise and grow domestic manufacturing, protect American jobs, and secure the country’s economic independence, we are disappointed and respectfully disagree with Judge Trammell's decision. This is a transformational project for the people of this community, the state of Georgia, and the United States of America.”

The parties announced in May a $1.5 billion incentive package for Rivian to build its second EV factory at Stanton Springs North, near Atlanta. The plant is planned to produce 400,000 EVs/year. Construction was slated to start in the summer and commission by late 2024.  

The carmaker committed to creating 7,500 jobs with an average annual wage of $56,000, which the court challenged, alongside questioning Rivian’s ability to fulfil its commitments having faced financial losses and production delays. The deal with state and local authorities included tax incentives and exemptions, and the delivery of a site ready for accelerated development. The latter offer would entail the construction of public infrastructure potentially covered by the bonds.

It’s unclear whether the decision on the bonds will impact Rivian’s plans. The carmaker declined to comment. 

Georgia Governor Brian Kemp said on 28 September the state has been named No. 1 state for business for the ninth consecutive years thanks to its “world-class infrastructure, award-winning workforce training programs, [and] pro-business environment.”

South Korea’s Hyundai Motor Group has also pledged to invest $5.54 billion in the state, to build its first fully dedicated EV and battery manufacturing plant. Construction is slated to start in January 2023, with full production of 300,000 units/year expected in H1 2025.