"Market conditions" could mean a lot of things, and none of them are great news for America's EV industry. There are the Trump administration's wide-ranging tariffs, which are hiking up costs and creating migraines for automakers foreign and domestic. And then, of course, there's the looming end to the federal EV tax credit on September 30. Honda did not elaborate on whether the expiring policy played a role in the decision, but the timing is hard to ignore.
Announced investments in battery manufacturing peaked in 2022, following the Biden-era Inflation Reduction Act meant to incentivize the production of electric vehicles and components, according to June 2025 data from research firmRhodium Group. In 2024, investments fell 80% from that 2022 peak, and in the first three months of 2025, companies cancelled a record $6 billion in battery manufacturing announcements.