Dr. Phosphorous
Platinum Member
- Sep 3, 2024
- 10,042
- 6,259
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- Banned
- #1
The U.S. manufacturing "renaissance", Ladies & Gentlemen.....over before it even started because Trump and imbecile MAGA Republicans don't believe in electrical vehicles. Not to mention Trump's stupid ass ******* tariffs.
$6 billion in manufacturing investments.....DOWN THE DRAIN.
From the Washington Post --
Over the past three years, companies have invested tens of billions of dollars toward making electric vehicles in the United States, buoyed by tax incentives aimed at helping American businesses compete with China.
Now, those companies are facing a strange problem: too much manufacturing capacity, not enough demand.
As sales of electric vehicles slow and congressional Republicans take aim at EV tax credits and incentives, the United States is slated to have more battery and EV manufacturing than it needs, according to a report released Wednesday by the Rhodium Group, a research firm. That could leave factories — many of which are already operating or under construction — stranded if car sales continue to slump.
“The rug is being pulled out from under these manufacturers,” said Hannah Pitt, a director in Rhodium’s energy and climate practice.
The Inflation Reduction Act, signed into law by President Joe Biden in 2022, included several provisions to push automakers to produce electric vehicles and electric car parts in the United States. One tax credit gives companies cash for producing battery components domestically; the consumer EV tax credit, meanwhile, offers $7,500 to customers for an EV that is assembled in the United States with domestic battery parts and minerals.
After the law passed, battery investment in the U.S. skyrocketed. Companies went from investing about $1 billion per quarter in 2022 to $11 billion per quarter in 2024. Most of that battery investment went to red states, including in the South’s “Battery Belt,” where manufacturers were drawn to inexpensive land and a nonunionized workforce.
Now, however, that battery boom is teetering. In the first three months of 2025, companies canceled $6 billion in battery manufacturing — a record. EV sales have slowed.
Meanwhile, Republicans are planning to phase out the tax credit for producing battery components and eliminate the consumer tax credit for EVs. In a plan released by the Senate Finance Committee on Monday, Republicans suggested slashing almost all the clean energy provisions from the Inflation Reduction Act. The House has already passed a bill that would repeal most of the provisions.
“Hundreds of thousands of manufacturing jobs in the U.S. are now in danger,” Sen. Ron Wyden (Oregon), the panel’s top Democrat, said at a news conference Tuesday. “My own view is that projects all over the country are being canceled as we speak.”
Albert Gore, executive director of the Zero Emission Transportation Association, an EV lobby group, said, “Legislators should not be surprised if passing the bill as written, they have created the conditions for closure of a facility in their district.”
$6 billion in manufacturing investments.....DOWN THE DRAIN.
From the Washington Post --
Over the past three years, companies have invested tens of billions of dollars toward making electric vehicles in the United States, buoyed by tax incentives aimed at helping American businesses compete with China.
Now, those companies are facing a strange problem: too much manufacturing capacity, not enough demand.
As sales of electric vehicles slow and congressional Republicans take aim at EV tax credits and incentives, the United States is slated to have more battery and EV manufacturing than it needs, according to a report released Wednesday by the Rhodium Group, a research firm. That could leave factories — many of which are already operating or under construction — stranded if car sales continue to slump.
“The rug is being pulled out from under these manufacturers,” said Hannah Pitt, a director in Rhodium’s energy and climate practice.
The Inflation Reduction Act, signed into law by President Joe Biden in 2022, included several provisions to push automakers to produce electric vehicles and electric car parts in the United States. One tax credit gives companies cash for producing battery components domestically; the consumer EV tax credit, meanwhile, offers $7,500 to customers for an EV that is assembled in the United States with domestic battery parts and minerals.
After the law passed, battery investment in the U.S. skyrocketed. Companies went from investing about $1 billion per quarter in 2022 to $11 billion per quarter in 2024. Most of that battery investment went to red states, including in the South’s “Battery Belt,” where manufacturers were drawn to inexpensive land and a nonunionized workforce.
Now, however, that battery boom is teetering. In the first three months of 2025, companies canceled $6 billion in battery manufacturing — a record. EV sales have slowed.
Meanwhile, Republicans are planning to phase out the tax credit for producing battery components and eliminate the consumer tax credit for EVs. In a plan released by the Senate Finance Committee on Monday, Republicans suggested slashing almost all the clean energy provisions from the Inflation Reduction Act. The House has already passed a bill that would repeal most of the provisions.
“Hundreds of thousands of manufacturing jobs in the U.S. are now in danger,” Sen. Ron Wyden (Oregon), the panel’s top Democrat, said at a news conference Tuesday. “My own view is that projects all over the country are being canceled as we speak.”
Albert Gore, executive director of the Zero Emission Transportation Association, an EV lobby group, said, “Legislators should not be surprised if passing the bill as written, they have created the conditions for closure of a facility in their district.”
