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The Environmental Defense Fund cited $1.4 billion in canceled renewable energy investments stemming from federal policy shifts around EVs, renewable energy and tailpipe emissions.
The report comes as the Trump administration and Congress have been targeting EVs, tax credits and other policies meant to promote renewable energy. For example, in Februrary alone:
In addition, last year’s One Big Beautiful Bill Act repealed several tax incentives related to clean vehicles, renewable energy, alternative fuels and energy-efficient commercial buildings. The leglistation also narrowed eligibility for some other credits.
The most affected sectors from January 2025 through Q1 2026 were EVs and batteries, with 15% of announced EV investments and 12% of battery investments canceled. However, companies continued investing in transmission equipment, grid technologies and solar manufacturing in Q1.
The report noted that international geopolitics also affected the U.S. renewable energy manufacturing sector. For example, Canada allowed the first imports of Chinese EVs starting March 1, and the war in Iran continues to roil energy markets.
These and other events throughout 2025 and 2026 have forced manufacturers to rethink renewable energy projects in the U.S. According to the report, manufacturers canceled four facilities in Q1, resulting in a loss of $1.4 billion in previously announced investments. Several other facilities announced pauses in manufacturing.
At the same time, 12 companies announced $2.5 billion in new investments that created 2,200 jobs. These investments and jobs were tied to 21 projects in 12 states.
All of this collectively resulted in a net $1.1 billion increase in investment but net loss of 5,900 jobs across 15 states in Q1, EDF said. The net positive EV investments were driven by an $800 million announcement by Toyota for its 40-year-old Kentucky plant and a $700 million announcement by Scout Motors for its Blythewood, South Carolina, facility.
“The discrepancy between the positive investment figure and the negative employment figure reflects developments at two battery projects in Georgia and North Carolina, where companies announced job reductions without corresponding decreases in planned investment,” the report said.
It added that the top five states for renewable energy manufacturing investment from 2000 though Q1 2026 are Georgia, Michigan, North Carolina, Kentucky and Tennessee. Consequently, these states were most affected by the job cuts.
“Although net clean investment in the first quarter of 2026 was positive, American renewable energy manufacturing continues to face significant challenges and cancellations continue,” the report said.
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Companies are navigating through tariff uncertainty and evolving policy changes as the industry invests in domestic production, AI, automation and workforce development programs.
The United States can now produce every major component of the solar and storage supply chain, with multiple facilities opening recently. Yet conflicting political priorities and federal policies are creating headwinds for the sector.
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Get the free daily newsletter read by industry experts
Companies are navigating through tariff uncertainty and evolving policy changes as the industry invests in domestic production, AI, automation and workforce development programs.
The United States can now produce every major component of the solar and storage supply chain, with multiple facilities opening recently. Yet conflicting political priorities and federal policies are creating headwinds for the sector.
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