The U.S. clean energy manufacturing industry saw a record number of project cancellations in the first quarter of the year, as companies grappled with the “rising headwinds” of tariffs and potential tax credit rollbacks, according to a new report.
At the same time, the Inflation Reduction Act helped spur $9.4 billion in new electric vehicle, battery and renewable manufacturing projects from January to March, according to the Clean Investment Monitor, a project of research firm Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.
The analysis underscores competing narratives shaping the energy sector: the IRA is sparking a build out of U.S. factories, but that growth is at risk of hitting a wall.
“The uptick in new [clean manufacturing] announcements, coupled with significant cancellations, highlights both the progress achieved under the IRA and the risks posed by an unstable policy environment,” the report said. “The coming months will be critical for determining whether the US clean technology manufacturing boom picks up pace or stalls.”
