Electric vehicle investments are surging in Georgia.
According to a recent Wells Fargo report, Georgia has received more private investments in electric vehicle and battery manufacturing than any other state, with just over $23 billion to date.
Jackie Benson, an economist at Wells Fargo, told Business Insider that the state is poised to be a hub for EVs because of its business-friendly environment, robust population growth, and federal and state incentives attracting companies to the state.
Since 2022, the Peach State has added over 30,000 clean energy jobs, more than any other state, according to a June study by Climate Power, a strategic communications firm.
This comes as federal investment in green energy is ramping up, and people are flocking south for a lower cost of living and better economic opportunities.
Investments in the Battery Belt to boost EV manufacturing and infrastructure
In 2023, Gov. Brian Kemp said that Georgia would become the “electric mobility capital of the world,” per the Atlanta-Journal Constitution. So far, it’s looking promising.
Georgia, Alabama, North Carolina, South Carolina, and Tennessee are a part of the Battery Belt and have received nearly $77 billion in private investment in EV battery manufacturing to date, according to an August report by Atlas Public Policy.
It’s not just southern states: Michigan leads the nation in capacity for electric vehicle battery manufacturing, but Georgia is second, according to a January report by the Environmental Defense Fund, a nonprofit advocacy group.
The state has also greatly benefited from federal investments in green energy and electric vehicle manufacturing and infrastructure. The Biden Administration aims for 50% of new vehicles in 2030 to be EVs, and investment in green energy in Georgia is partly a result of the 2021 Bipartisan Infrastructure Law and 2022 Inflation Reduction Act.
The Bipartisan Infrastructure Law allocated over $175 million toward the EV battery supply chain in Georgia and $135 million over five years toward infrastructure for EV charging stations in Georgia.
In February, Hyundai announced over $7 billion in investment in production facilities in Georgia. The company estimates their investments in Georgia will create nearly 40,000 jobs in the state.
“The Hyundai investment specifically has boosted Georgia’s profile in terms of EV production on the national stage,” Benson said.
The Inflation Reduction Act also created a $7,500 tax credit for new EVs for both consumers and businesses and incentivized efforts to boost domestic EV supply chains.
In May, Kia announced the production of its first American-made EV at its production facility in West Point, Georgia, enabling the company to take advantage of the tax credit.
Manufacturing accounts for 10% of Georgia’s gross state product, which is its economic output, and construction accounts for 4%, according to Wells Fargo.
Investments in EV and battery manufacturing will boost job growth and output in both of these sectors, Benson said.
While government, health care, and leisure are the leading industry drivers in Georgia, investments in manufacturing are poised to boost the state’s overall economic growth.
Georgia transplants are helping fuel economic growth in the state
Georgia’s real GDP outpaced the nation in the first quarter of the year, at 2.3% and 1.4%, respectively. In seven of the last 10 years, the state’s GDP has outpaced the national average, according to Wells Fargo.
Strong population growth remains a tailwind for Georgia’s economic growth and EV industry, Benson said.
Between 2021 and 2022, there were 327,795 people who moved into Georgia, according to data from the Census Bureau. The Peach State had the fifth most new residents during that time, following Florida, Texas, California, and North Carolina.
New state residents means more consumers at stores, more homebuyers and renters, and more demand for goods in Georgia, fueling economic activity.
Among those people who moved from another US state into Georgia, nearly 26,000 came from California, and more than 23,000 from both Texas and North Carolina, according to data from the Census Bureau.
The biggest influx of new residents in Georgia came from outside the US. Between 2021 and 2022, just over 60,000 people from abroad moved to Georgia, per Census Bureau data.
Benson said single-family construction has recently scaled up in the state, in line with its robust population growth.
Benson said the scale-up in single-family construction has helped shore up construction employment. The three-month moving average for job growth in construction in the state was up 0.1% year-over-year in July, the report noted.
Unemployment in Georgia remains below the national average and is only 40 basis points higher than its historic low in 2022, Benson said.
“Nationwide, we’re seeing builders pull back on single-family construction for multiple reasons,” Benson said. “But in Georgia, that high population growth has spurred an upshift in single-family building this year. That’s something unique to the state.”
Do you live in the Battery Belt? Share your story at jtowfighi@businessinsider.com
