A new report by the Financial Times found that nearly 40% of manufacturing projects funded by the Inflation Reduction Act and CHIPS and Science Act are either delayed or on hold. According to the Financial Times, the total amount of money tied up in the delays is almost $228 billion.
The report showed the largest delayed projects include a $2.3 billion battery storage site in Arizona, a $1.3 billion lithium refinery in South Carolina, and a$1 billion solar panel factory in Oklahoma. Businesses claimed a weakening demand for products, competition from China, and concern over the upcoming presidential election as reasons for the delays. China manufactures about three-quarters of the world’s solar panels.
The Inflation Reduction and CHIPS Acts provided more than $400 billion in tax credits, loans, and grants to spur clean energy manufacturing. The National Association of Manufacturers, along with NAED, is supporting the Senate Natural Resources Committee’s passage of a process to speed up the permitting process, which will speed up clean energy project approval. Both the Inflation Reduction Act and CHIPS Act passed in 2022.
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