Clean energy manufacturers cancel projects as Trump-era policies take hold

Kate Magill | Source: ESGDIVE | Posted 04/30/2025

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Clean energy manufacturers canceled, closed or downsized nearly $8 billion in projects in the first quarter of 2025, as the Trump administration’s rollback of support for the sector sets in.

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In the first quarter of 2025, clean energy manufacturers faced significant setbacks, canceling, closing, or downsizing nearly $8 billion in projects due to the Trump administration's rollback of support for the sector. The advocacy nonprofit E2 reported these cancellations for the first time, highlighting a growing trend of abandoned projects across various clean energy sectors, including wind, solar, and electric vehicle manufacturing. Notable cancellations included Kore Power's $1.2 billion factory in Arizona and Freyr Battery's $2.6 billion factory in Georgia.

The shift in the clean energy landscape follows a period of robust investment spurred by the Inflation Reduction Act in 2022, which provided lucrative tax credits and funding for domestic manufacturing. However, the Trump administration's policies, including a freeze on IRA funding and tariffs on imports, have created uncertainty that is deterring further investment. Despite these challenges, some companies, like T1 Energy, are still pursuing projects, indicating a desire to invest in the U.S. market, albeit under increasingly uncertain conditions.

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Source Link: https://www.esgdive.com/news/inflation-reduction-act-canceled-projects-q1-2025-kore-freyr/746483/

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Clean energy manufacturers cancel projects as Trump-era policies take hold

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