The Trump administration’s move to roll back support for low-carbon energy threatens billions in private investment for U.S. factories producing renewable energy equipment, electric vehicles, and batteries.
Lydia DePillis reports for The New York Times.
In short:
- Federal incentives under the Biden administration spurred a boom in U.S. factory construction, particularly for clean energy and semiconductor production.
- The Trump administration and Republican-led Congress are considering cuts to renewable energy subsidies, prompting companies to reconsider planned investments.
- Delays in policy decisions and permitting have already stalled some projects, while others, such as battery and hydrogen production plants, remain in limbo.
Key quote:
“It’s not down to one single thing — there’s just too much uncertainty, and that prevents boards and steering committees from approving business cases.”
— Hakon Volldal, CEO of Nel
Why this matters:
Renewable energy manufacturing has seen record investment, but shifting federal policy creates uncertainty for companies planning long-term projects. The rollback of tax credits and subsidies could slow the transition to clean energy, affecting job growth and U.S. competitiveness in a global industry. Manufacturers may hesitate to expand or relocate operations to the U.S., potentially ceding leadership to China and Europe. Meanwhile, disruptions to clean energy supply chains could prolong dependence on fossil fuels and raise costs for consumers.
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