US Battery Plant Boom on Course: Over 23,000 Jobs Planned

The US is experiencing an unprecedented boom in clean energy manufacturing investments

The US is witnessing a historic surge in clean energy manufacturing investments, driven by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These acts have leveraged billions in government support, encouraging private sector investments in clean energy supply chains nationwide.

Tracking Clean Energy Investments

Research by Jay Turner and his students at Wellesley College, published on The Big Green Machine website, shows that $127 billion has been invested across 225 projects since the Inflation Reduction Act was enacted in 2022, creating over 131,000 jobs.

Challenges in Clean Energy Projects

However, reports suggest potential failure or significant delays in these projects. The Financial Times reported that 40% of the surveyed projects have been delayed. Similarly, The Information warned that 1 in 4 companies are dropping government-supported grants for battery investments.

Status of Battery Cell Factories

We investigated all 23 battery cell factories announced or expanded since the Inflation Reduction Act came into effect. Our data reveals that these factories, most of which are gigafactories, have the potential to generate significant employment.

Investment and Job Creation

Our research indicates that the planned capital expenditures amount to $52 billion, which would support 490 gigawatt-hours of battery manufacturing capacity per year, sufficient to power around 5 million new electric vehicles. The facilities are expected to provide nearly 30,000 new jobs, predominantly in the U.S. Southeast, Midwest, and Southwest.

Project Status Check

We checked if these projects are on track or facing delays. We contacted local and state economic development agencies and verified the project’s status through public data or official announcements.

Results

Our research shows that 13 projects with a total planned capital investment of over $40 billion and nearly 352 gigawatt-hours per year of capacity, are on track. These include most of the largest projects with the most substantial investments and expected production. Collectively, 77% of the total planned capital investment, 79% of the proposed jobs, and 72% of the planned battery production are on track.

2024 Election Impact

The upcoming elections could significantly impact these projects. Our data suggest that the biggest risk these projects face is not slow demand for electric vehicles or local opposition, but potential policy changes. Many projects rely on Advanced Manufacturing Tax Credits authorized by the Inflation Reduction Act until 2032. A change in administration could potentially divert unspent funds, slow the approval of grants or loans, or complicate the process of obtaining tax incentives.