According to the Financial Times, approximately 40% of major U.S. manufacturing projects have been delayed or paused during the first year of the Biden administration’s IRA implementation. In the Inflation Reduction Act and the Chips and Science Act, the government offers over $400 billion in tax credits, loans, and grants to boost the development of U.S. clean technologies and semiconductor supply chains.
However, the Financial Times investigation reveals that among projects valued at over $100 million, $84 billion worth have been delayed by at least two months or indefinitely paused, accounting for about 40% of these major projects.
Additionally, the 114 large projects tracked by the Financial Times have a total value of $227.9 billion. Companies affected by delays or suspensions cite worsening market conditions, slowing demand, and lack of policy certainty in a high-risk election year as reasons for changing their plans.
The largest stalled projects include Eni’s $1 billion solar panel plant in Oklahoma, LG Energy Solution’s $2.3 billion battery storage facility in Arizona, and Albemarle’s $1.3 billion lithium refining plant in South Carolina.
Though many project delays have been publicly reported, some remain undisclosed. For instance, Pallidus, a semiconductor manufacturer, was set to relocate its headquarters from New York to a site that is less than 40 minutes from Albemarle’s lithium refinery. And with operations expected to start in Q3 2023, Pallidus had intended to invest $443 million and to create over 400 jobs, but the company seemed to have forgotten this project site.
In Bel Aire, Kansas, Integra Technologies would have planned to build an $1.8 billion semiconductor plant last year, but the project has yet to move forward due to uncertainties surrounding government funding.
Similarly, TSMC has also delayed production at its second Arizona wafer plant by two years, which is part of its $40 billion project.
Meanwhile, the electric vehicle sector has also been in a dilemma. Samkee, a South Korean auto parts manufacturer, has postponed its plans to expand EV production lines in Alabama by one to two years. Additionally, Lear Corporation, a long-established U.S. automotive seat and electronics supplier, has suspended its plans to build a new plant in Detroit.
Source: (1)WeChat Official Account—电池工业网 (2)Financial Times
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