St. Louis, November 15, 2025 — A planned $575 million battery factory, poised to be the first large-scale lithium iron phosphate (LFP) facility in the U.S., has been cancelled after the withdrawal of a federal grant, signaling a broader trend of stalled clean energy investments. This project is now one of over 50 major clean energy initiatives scrapped or scaled back this year.
Clean Energy Investments Plunge
More than $32 billion in clean energy investments have been abandoned since January, as federal policy shifts.
- Over $32 billion in clean energy investments have been cancelled or scaled back in 2025.
- Lost investments currently outweigh new project announcements by a ratio of three to one.
- Nearly 40,000 jobs are at risk due to these project cancellations.
- Republican congressional districts have been disproportionately affected, losing 37 large-scale projects.
From January through November, companies have abandoned more than $32 billion in investments as federal policy has become less supportive of clean energy, according to data from E2, a nonpartisan organization tracking clean energy projects in the U.S. While some companies continue to announce new ventures, lost investments are now outpacing them by three to one. “The scale of cancellations shows how fragile this moment is for America’s clean energy economy,” says Michael Timberlake, director of research at E2.
What factors are contributing to the decline in clean energy investments? A shift in federal policy is a primary driver, leading companies to reassess the viability of their projects.
The wave of cancellations includes a $4.3 billion General Motors electric vehicle plant in Michigan, now being retooled for gas-powered vehicles, a $3.2 billion Stellantis battery factory in Illinois that has been cancelled, and a $2.6 billion battery factory in Georgia, scrapped by a Norway-based manufacturer. The majority of these cancelled projects are manufacturing facilities, though tracking cancellations of solar or wind farms proves more difficult. However, there is some indication the administration is reconsidering its stance on battery technology.
Job Losses and Regional Impact
These cuts translate to nearly 40,000 lost jobs, according to E2. Republican congressional districts have experienced the most significant impact, with a total of 37 large-scale projects cancelled within those areas.
Beyond the publicly announced cancellations, it’s difficult to quantify how many projects were never initiated due to the changing political landscape. Prior to the 2024 election, Timberlake notes that monthly investment announcements consistently exceeded $1 billion. Last month, that figure plummeted to $550 million—less than the value of the cancelled battery project in St. Louis.
“We’ll never recover those jobs and those investments that were going to be announced in 2025 under a different political environment,” says Timberlake. “And that’s going to add up over time to a significant loss in step with the rest of the world. We’ve now lost a lot of what could have been, and it’s going to be hard to ever get that back.”
Quick fact: The $32 billion in cancelled investments represents a substantial setback for the U.S. clean energy sector, potentially hindering the nation’s progress toward its climate goals.
