$1.4B in new clean energy factories, projects canceled in May: E2

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In May, $1.4 billion in clean energy factories and projects were canceled as Congressional Republicans advanced a reconciliation bill that threatens to significantly reduce clean energy tax incentives. This cancellation is part of a larger trend, with nearly $15.5 billion in clean energy investments being scrapped since the start of the year, affecting 30 projects overall. Notably, many of these canceled investments were intended for Republican-held districts, highlighting the political implications of the proposed legislation.

The report from clean energy nonprofits E2 and the Clean Economy Tracker indicates that major companies like General Motors and Li-Cycle have halted significant projects, including a $300 million EV manufacturing facility and a $960 million battery storage plant, respectively. E2's Communications Director, Michael Timberlake, emphasized that these cancellations reflect the industry's response to policy uncertainty and anticipated tax increases, which could lead to reduced energy availability and higher electricity costs for consumers. Despite these setbacks, there was a modest investment of nearly $450 million in new clean energy facilities in May, primarily driven by Rivian's investment in Illinois.