Georgia is dotted with dozens of clean energy projects, often located in far-flung rural areas. Combined, they’re worth $28 billion, promising 42,000 well-paying manufacturing jobs. They are scattered across solar, hydrogen and grid transmission projects, but electric vehicles are at the center of it all, designed to provide greater independence from China’s supply chains.
Under the Trump administration, much of that investment is in jeopardy. Now, leaders in the red state are ringing alarm bells to protect those projects and EV jobs.
Welcome to the Friday edition of Critical Materials, your daily round-up of news and events shaping the world of electric cars and technology. Also on our radar today, Slate Auto has confirmed a $700 million investment it received from multiple U.S. companies. Plus, the European Union has cleared the final hurdle in providing carmakers more breathing room to meet its CO2 emissions targets.
30%: Georgia’s Future Is ‘At Risk,’ Officials Say
Hyundai Georgia Metaplant
Photo by: Patrick George
The Inflation Reduction Act, which Congress passed into law in August 2022, heralded a new era for American manufacturing in the clean energy sector. But two years in, the IRA’s mission has been crushed by partisan backlash. Its goal of reducing air pollution in the U.S. is labeled a “scam” and the program has flagrantly been at the center of misinformation campaigns and unwarranted vitriol.
Quietly though, the IRA was accomplishing what it set out to do. Georgia is among its biggest beneficiaries. Now a report released by Senator Raphael Warnock, a Democrat from Georgia, is urging the administration to preserve the clean energy tax credits, citing support from 21 House Republicans and four Senate Republicans.
Specifically, the report urges the government to preserve the section 45X credit for local component sourcing and critical minerals, 48C credit to support manufacturing facilities and 30D, which enables the $7,500 consumer credit to make purchasing EVs more affordable.
The scale of investments is staggering. Hyundai alone is developing six megaprojects in the state. That includes two battery plants it is building in partnership with Korea’s LG Energy Solutions. Another plant is planned with SK On; a factory for auto parts supplier Hyundai Mobis is in the works, there’s another one for heavy equipment supplier HD Hyundai (previously Hyundai Industrial), and finally, the Metaplant to build EVs.
Rivian’s planned $5 billion project to build its next-generation R2 and R3 affordable models would be the largest single economic development project in the state’s history, with projected 9,500 jobs. And then there are dozens of solar energy and grid and transmission projects also in the pipeline, worth billions more.
Here’s more from the report:
A robust domestic clean energy manufacturing sector allows the United States to compete with China, which has sought to undermine the U.S. energy sector through practices like dumping heavily subsidized clean energy products into U.S. markets.
Overall post-IRA business investment in Georgia clean energy manufacturing has totaled nearly $16.4 billion, which is over 10 times greater than clean energy manufacturing investment in the previous two years. For every $1 of federal investment following the IRA, Georgia saw over $4.50 of private investment as well.
Indeed, nationwide analyses show that the “vast majority” of projects funded by the IRA, over every 3 in 4 projects, have gone to House districts currently held by Republicans. This is especially true in Georgia: 83% of the projects, 94% of the total investment, and 75 percent of the jobs are in Republican districts.
These investments have helped keep American electric vehicle manufacturing competitive against China’s heavily subsidized electric vehicle industry.
But the support for such projects in the state is mixed. Locals love the jobs, but ironically, not the products. And even though Governor Brian Kemp once touted the state as the country’s “electric mobility capital,” more recently he has attempted to walk a finer line between the Trump administration’s agenda and the jobs that support his constituents.
If the government wants to minimize the impact of its tariffs, preserving the IRA would be smart, especially since the U.S. economy contracted by 0.3% in the first quarter due to tariff uncertainties. If the economy contracts again this quarter, that would officially qualify as a recession. These clean energy investments could help offset that risk, driving economic activity rather than dragging it down.
60%: Slate Auto Reveals Its Investors
Photo by: Slate
Believe it or not, Slate trucks have garnered interest across U.S. auto communities. I’m returning from a press trip at a big legacy automaker, where the low-cost trucks and the idea of a highly customizable “Blank Slate” were on everyone’s minds. Now, the start-up has finally revealed where it’s getting all its investments from. And it’s impressive.
Slate told Newsweek on Thursday that it raised $700 million by the end of last year from multiple U.S. investors through Series A and B funding rounds. The cash is coming from Bezos Expeditions, which manages Amazon CEO Jeff Bezos’ personal portfolio, venture capital firm General Catalyst and investment firm TWG Global among others. It’s unclear how much each of those contributed.
The start-up revealed its unique approach to EVs last month. The company will sell you a $27,500 (before factoring in the tax credits) bare bones pickup truck smaller than the Ford Maverick with steel wheels, cloth seats and an empty dashboard with no screen. Buyers will then have the option to add a bolt-on SUV or fastback kit and choose from dozens of customizations.
However, its success hinges on the survival of the $7,500 consumer tax credit for EVs, which House Speaker Mike Johnson recently said is more likely to be repealed than not.
90%: Europe Lowers CO2 Emissions Targets For Carmakers
Photo by: Alex Goy / InsideEVs
The European Parliament overwhelmingly voted to support softer CO2 emissions targets for carmakers, helping them avoid billions of dollars in fines if they didn’t meet the now-amended goals.
The bloc, which has stricter emissions criteria than the U.S., initially aimed to reduce vehicle emissions by 15% in 2025 compared to a 2021 baseline. If automakers didn’t meet this target, the combined fine was estimated to be a whopping €15 billion ($16.8 billion).
That would have been catastrophic for carmakers as they’re already dealing with threats from rising Chinese automakers and U.S. tariffs. The amendment to the original plan is now spread out over three years instead of just 2025, giving automakers more breathing room.
After intense lobbying from automakers, it garnered ample support in the parliament, with 458 members voting in support of the measure, 101 against and 14 abstaining.
100%: Would You Buy A Blank Slate?
Photo by: Slate
Or one that’s not so blank and fully decked out? It’s gutsy to launch a new electric car company in the U.S. in 2025—especially when the government is hostile towards EVs and the country is deeply divided on them.
But Slate is striking where it matters: affordability. That has largely remained elusive to the EV market. If the consumer tax credits for EVs survive, the Slate truck could potentially cost as low as $20,000—that’s if you qualify for the full $7,500 tax credit.
If this project succeeds, would you put your money down for this truck? And if yes, what customizations would you add? Leave your thoughts in the comments.
Have a tip? Contact the author: suvrat.kothari@insideevs.com
