$8 billion of US climate tech projects have been canceled so far in 2025

This year has been rough for climate technology: Companies have canceled, downsized, or shut down at least 16 large-scale projects worth $8 billion in total in the first quarter of 2025, according to a new report.

That’s far more cancellations than have typically occurred in recent years, according to a new report from E2, a nonpartisan policy group. The trend is due to a variety of reasons, including drastically revised US policies.

In recent months, the White House has worked to claw back federal investments, including some of those promised under the Inflation Reduction Act. New tariffs on imported goods, including those from China (which dominates supply chains for batteries and other energy technologies), are also contributing to the precarious environment. And demand for some technologies, like EVs, is lagging behind expectations.

Some turnover is normal, and there have been a lot of projects announced since the Inflation Reduction Act was passed in 2022—so there are more in the pipeline to potentially be canceled. So many battery and EV projects were announced that supply would have exceeded demand “even in a best-case scenario. So some of the project cancellations are a result of right-sizing, or getting supply and demand in sync.

Other projects are still moving forward, with hundreds of manufacturing facilities under construction or operational. But it’s not as many as we’d see in a more stable policy landscape.

Hundreds of projects that have been announced in just the last few years are under construction or operational despite the wave of cancellations. But it is an early sign of growing uncertainty for climate technology.

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