Full Title: Clean Investment Monitor: The State of US Clean Energy Supply Chains in 2025
Author(s): Rhodium Group
Publisher(s): Rhodium Group
Publication Date: April 24, 2025
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Description (excerpt):
Since the US enacted the Inflation Reduction Act (IRA), manufacturing has emerged as the fastest-growing segment of investment in clean energy technologies. Quarterly investment in clean manufacturing more than tripled—from $2.5 billion in Q3 2022 to $14.0 billion in Q1 2025—primarily driven by the electric vehicle supply chain. Companies have announced 380 clean technology manufacturing facilities since the bill was signed into law on August 16, 2022, nearly half of which were operational as of March 31, 2025.
This rapid buildout reflects an intensifying global competition to onshore clean technology supply chains and boost domestic manufacturing. The Section 45X Advanced Manufacturing Production Tax Credit has played a central role, directly subsidizing US-based production of key components like battery cells, solar modules, and wind turbine components. At the same time, the sector faces rising headwinds from tariff escalations, an uncertain federal policy outlook, and broader macroeconomic pressures. In the first quarter of 2025, six announced projects—representing $6.9 billion of investment—were cancelled, the highest quarterly value on record. Still, companies announced $9.4 billion in new manufacturing projects, a 47% increase from Q4 2024, though 23% below the value announced in Q1 2024.
In this note, the authors assess the state of supply chains for solar, wind, batteries, and electric vehicles (ZEVs) as of Q1 2025 by comparing announced domestic manufacturing capacity from the Clean Investment Monitor database with annual deployment of those technologies in 2024, and the range of anticipated 2030- 2035 demand projections from Rhodium Group’s 2024 Taking Stock report. These projections assume existing regulations and tax policies remain in place.