The clean energy manufacturing industry saw a record amount of canceled investments in the fourth quarter of 2025, underscoring how federal funding cuts are shifting renewable, electric vehicle and battery supply chains.
The research firm Rhodium Group reported that roughly $8 billion in clean manufacturing investments were terminated in October, November and December, the highest-ever quarterly amount of cancellations. Overall, investments in the sector dropped 29 percent in comparison to the same period in 2024.
The numbers are a further “signal that the pipeline of new [clean energy] investment is shrinking,” said Hannah Hess, associate director at Rhodium’s climate and energy practice. The cancellations far outpaced the $3 billion in newly announced financing last quarter, she said.
Much of the pullback comes after the Trump administration phased out a key $7,500 tax credit for buyers of EVs, as directed by the Republican megalaw. That cut helped create a “cascading effect” for manufacturing, said Harold Tavarez, a research analyst with Rhodium’s energy and climate practice.
