Removal of the $7,500 EV tax credit under President Trump has slowed consumer interest in electric vehicles, with purchase intent at its lowest since 2019 per AAA. Slower EV sales have left battery producers with overcapacity, creating a growing battery surplus. BloombergNEF projects U.S. battery deployment of about 378 gigawatt-hours by 2030, a 56% reduction from earlier expectations. Announced battery investments peaked in 2022 after the Inflation Reduction Act, then fell sharply, with 2024 investments down 80% and $6 billion in cancellations in early 2025. Several planned factories, including a $2.6 billion Freyr plant in Georgia, were cancelled.
Announced investments in battery manufacturing peaked in 2022, following the Biden-era Inflation Reduction Act meant to incentivize the production of electric vehicles and components, according to June 2025 data from research firmRhodium Group. In 2024, investments fell 80% from that 2022 peak, and in the first three months of 2025, companies cancelled a record $6 billion in battery manufacturing announcements.
Clean-energy company Freyr Battery, for example, said earlier this year it was scrapping plans to build a $2.6 billion factory in Georgia, citing falling battery prices as one reason for the factory cancellation. The massive drop off in battery deployment is in large part a result of slowing electric vehicle demand, which has coincided with the passage of Trump's "Big Beautiful Bill," ending a $7,500 tax credit on the vehicles.
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