Dive Brief:
- Renewable energy manufacturing employment took a hit in the first quarter of 2026, with a total loss of about 8,100 jobs and a net loss of 5,900 jobs, according to an Environmental Defense Fund report.
- The sector also saw $1.4 billion in canceled investments, although there was a $1.1 billion net increase in investments overall.
- The cancellations followed federal rollbacks targeting renewable energy incentives, including electric vehicle rebates and tax incentives for energy-efficient buildings, as well as emissions standards.
Dive Insight:
The report comes as the Trump administration and Congress have been targeting EVs, tax credits and other policies meant to promote renewable energy. For example, in Februrary alone:
- The Treasury Department released guidance on access to federal renewable energy tax credits, based on whether the manufacturer utilizes components from a prohibited foreign entity.
- The Commerce Department increased tariffs on Chinese-imported battery components, which the report said resulted in an effective tariff rate of about 220%.
- The U.S. Environmental Protection Agency rescinded the 2009 Greenhouse Gas Endangerment Finding, including the repeal of tailpipe greenhouse gas emissions standards for vehicles. This put downward pressure on EV sales, EDF said.
- The Federal Highway Administration proposed to require 100% domestic materials for EV chargers in order to receive federal funding, which critics said would curtail expansion of charger networks.
In addition, last year’s One Big Beautiful Bill Act repealed several tax incentives related to clean vehicles, renewable energy, alternative fuels and energy-efficient commercial buildings. The legislation also narrowed eligibility for some other credits.
The most affected sectors from January 2025 through Q1 2026 were EVs and batteries, with 15% of announced EV investments and 12% of battery investments canceled. However, companies continued investing in transmission equipment, grid technologies and solar manufacturing in Q1.
The report noted that international geopolitics also affected the U.S. renewable energy manufacturing sector. For example, Canada allowed the first imports of Chinese EVs starting March 1, and the war in Iran continues to roil energy markets.
These and other events throughout 2025 and 2026 have forced manufacturers to rethink renewable energy projects in the U.S. According to the report, manufacturers canceled four facilities in Q1, resulting in a loss of $1.4 billion in previously announced investments. Several other facilities announced pauses in manufacturing.
At the same time, 12 companies announced $2.5 billion in new investments that created 2,200 jobs. These investments and jobs were tied to 21 projects in 12 states.
All of this collectively resulted in a net $1.1 billion increase in investment but net loss of 5,900 jobs across 15 states in Q1, EDF said. The net positive EV investments were driven by an $800 million announcement by Toyota for its 40-year-old Kentucky plant and a $700 million announcement by Scout Motors for its Blythewood, South Carolina, facility.
“The discrepancy between the positive investment figure and the negative employment figure reflects developments at two battery projects in Georgia and North Carolina, where companies announced job reductions without corresponding decreases in planned investment,” the report said.
It added that the top five states for renewable energy manufacturing investment from 2000 though Q1 2026 are Georgia, Michigan, North Carolina, Kentucky and Tennessee. Consequently, these states were most affected by the job cuts.
“Although net clean investment in the first quarter of 2026 was positive, American renewable energy manufacturing continues to face significant challenges and cancellations continue,” the report said.
