IRA-driven battery projects face delays amid economic headwinds: report

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From ESS-news.com

Key battery manufacturing projects initiated in response to the Inflation Reduction Act (IRA) are facing setbacks, according to a Financial Times (FT) investigation.

The IRA, signed into law by President Biden in August 2022, proposed a $369 billion injection into the US clean energy economy. The industrial policy focused on reshoring manufacturing for the renewable energy transition, and significant announcements have been made for U.S. manufacturing in batteries and materials, solar manufacturing, hydrogen, and more.

Yet the FT reports, when including semiconductor manufacturing as well, that of the projects worth more than $100m, “a total of $84bn have been delayed for between two months and several years, or paused indefinitely.” The FT notes some delays are public knowledge, while others have not been formally announced, citing interviews with more than 100 companies and state and local authorities to determine project statuses.

In terms of batteries and public announcements, LG Energy Solution’s $2.3 billion battery storage facility in Arizona is on a construction suspension after being quadrupled in March from its first announcement.

Read the complete article at ESS-news.

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