1 billion in large-scale factories and clean energy projects, marking a stark finish to a year where cancellations finally overtook new investment in the US clean energy sector. By the end of 2025, nearly $35 billion in clean energy investments had been canceled or downsized nationwide, taking more than 38,000 current and future jobs with them. This trend suggests that capital is growing more cautious about building factories and supply chains in the US.
Battery and EV projects drove much of the December pullback, a notable shift for sectors that have been at the center of the US manufacturing push over the past several years. Companies continued to announce new projects during the year, but the pace slowed as cancellations and downsizing accelerated. 3 billion in new clean energy investments, the lowest annual total since E2 began tracking projects four years ago and a sign that uncertainty around demand, costs, and policy is starting to bite.
8 billion by year’s end. Despite some bright spots in December, such as Kentucky and Texas landing newly announced projects, the overall direction of travel remained unchanged. Manufacturing reversals made up the vast majority of the damage in 2025, undercutting years of momentum aimed at rebuilding domestic clean energy supply chains.
2 billion from manufacturing facilities alone, canceling or laying off more than 38,000 jobs. The EV and battery sectors accounted for most of that downturn, each losing more than $21 billion in planned investments. E2’s analysis also shows that Republican-held congressional districts continue to bear the brunt of their own policies, continuing a trend seen in earlier tracking since many of the factories were in GOP-led states.
6 billion and about 12,600 jobs lost in Democratic-held districts. The Trump administration’s rollback of the Biden administration’s key Inflation Reduction Act incentives, paired with renewed tariff threats, is directly reshaping where clean energy factories get built. Manufacturing at this scale relies on policy stability, long-term tax credits, clear trade rules, and confidence that today’s incentives will still exist tomorrow.
Pull those supports away, and investment heads overseas.
The trend of cancellations overtaking new investments in the US clean energy sector is a concerning sign for the industry's future. As companies become increasingly cautious about investing in factories and supply chains in the US, it highlights the need for policy stability and long-term support to ensure continued growth and job creation.
