State subsidies fuel America’s EV boom but risk overcapacity

An hour east of Atlanta, turn off the interstate highway and drive into a postcard scene of rural Georgia—a road lined by tall pines, country homes and a cluster of churches—when suddenly a vast expanse of clear-cut land appears. Big yellow trucks are flattening the earth and large transmission lines run along its edge. What makes it especially attractive for an industrial investor cannot be seen: tax breaks, direct grants and other assistance that, all in, come to $1.5bn. When Georgia announced this incentive package last May for Rivian, a California-based startup that makes electric trucks and SUVs, it was the biggest corporate subsidy given by the state. Not for long, though. In July it promised an even bigger package, worth $1.8bn, to Hyundai, also for an electric-vehicle (EV) facility.