US manufacturing investment stumbles as clean tech cancellations pile up | TechCrunch

"Companies cancelled $5 billion worth of projects, while only $4 billion in new investments were announced. Actual clean tech manufacturing investments, not just announcements, declined by 15%, as well. The pullback comes in the wake of the GOP's reconciliation bill, which erased key portions of the Inflation Reduction Act, a piece of legislation that spurred a tidal wave of manufacturing investments in the United States."

"The latest projects to get the ax were predominately battery factories, the report said. The industry has encountered new headwinds as the One Big Beautiful Bill pulled key supports for many of the projects by softening rising demand for electric vehicles and eliminating production tax credits. Cancellations in the first quarter were largely centered around EV production, while battery manufacturing was responsible for the majority of those in the second quarter. Still, battery manufacturing remains a key driver of new investments, hitting $8 billion in the second quarter."

U.S. clean-tech manufacturing experienced a net pullback in the second quarter as cancellations totaled $5 billion while new investment announcements reached $4 billion. Actual clean-tech manufacturing spending fell 15% year-over-year. The rollback followed GOP reconciliation changes that removed key provisions of the Inflation Reduction Act, weakening demand signals and subsidies. Battery factory projects accounted for most Q2 cancellations, while EV production cancellations were more prominent in Q1. Despite cancellations, battery manufacturing still attracted $8 billion in new investment in Q2. Broader manufacturing investment softened, with spending on new factory buildings declining about 0.25% in both Q1 and Q2.

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