Half of $114B Inflation Act Factory Investment Goes to Swing States

TL/DR –

Since the passing of the Inflation Reduction Act in 2022, manufacturers have announced about $114 billion in clean-tech investments, with almost half planned for political swing states, reports BloombergNEF. The investments, spurred largely by President Joe Biden’s climate law, include factories for electric vehicles, big batteries and components for wind and solar farms. However, it’s unclear if these new manufacturing investments will translate into votes in the forthcoming election.

Record Clean-Tech Investment Following Inflation Reduction Act

Since the 2022 Inflation Reduction Act, a staggering $114 billion has been invested in clean technology by manufacturers, with nearly half of this expenditure in politically significant swing states, highlights a BloombergNEF report.

The climate legislation by President Joe Biden, central to the forthcoming election, has catalyzed economic growth and employment opportunities, particularly within vital presidential swing states. Yet, it remains undecided whether this new manufacturing boom will convert into votes, especially considering the absence of Republican support and anticipated challenge by Donald Trump.

Of the clean-tech factory investment announced, approximately $53.6 billion is purposed for six key swing states: Arizona, Georgia, Michigan, Nevada, North Carolina, and Pennsylvania. These investments are predominantly directed towards constructing factories for electric vehicles, large-scale batteries, and components for wind and solar farms.

The rationale behind investment locations varies per state, with Michigan attracting manufacturers due to its vast labor force and low-cost power. In contrast, Georgia is favored for its local government’s regulatory and fiscal support, outlines the BloombergNEF report.

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