Energy Company Abandons Atlanta Electric Battery Factory Plan, Shifts Focus to Texas Solar Plant
Freyr Battery has withdrawn plans to construct a $2.6 billion electric battery factory in Atlanta's suburbs, opting instead to invest in a solar panel plant acquired in Texas. The Newnan facility was expected to create over 700 jobs and produce batteries for renewable energy storage.
Freyr, headquartered in Newnan since 2018, cited rising interest rates, declining battery prices, and leadership changes as reasons for the cancellation. The company had previously received a $7 million grant from the Georgia Department of Economic Development to purchase the Newnan site.
Freyr's decision to focus on its Texas solar panel facility, acquired for $340 million, aligns with its strategy shift towards businesses that facilitate capital generation. The company's cash on hand has declined significantly in recent months.
Despite this setback, Georgia remains a hub for electric vehicle industry recruitment. SK Innovation operates a $2.6 billion battery plant in Commerce, while Hyundai Motor Group is investing $7.6 billion in an electric vehicle and battery plant near Savannah. Electric truck manufacturer Rivian is also pursuing plans to build a plant east of Atlanta.