5 Billion in US Clean Energy Projects Vanished in 2025: What Went Wrong | Taha Abbasi

The Clean Energy Investment Reversal That Nobody Saw Coming

For the first time since tracking began, more clean energy investment left US communities than came in during 2025. According to data from E2, companies abandoned, closed, or downsized nearly $35 billion in clean energy projects — canceling $3 for every $1 they announced. Taha Abbasi, a technology executive who closely follows the intersection of energy and technology, calls this “a structural warning signal that the industry cannot afford to ignore.”

The Numbers Are Staggering

In December 2025 alone, businesses walked away from $5.1 billion in large-scale factories and clean energy projects. Across the full year, companies announced just $12.3 billion in new clean energy investments — the lowest annual total since E2 began tracking four years ago. Meanwhile, cancellations and downsizing reached $34.8 billion, taking more than 38,000 current and future jobs with them.

The most dramatic pullback came from the EV and battery sector. SK On scrapped $2.8 billion in planned investment and approximately 3,300 jobs in Tennessee. Ford canceled a manufacturing plant in Ohio as it continues restructuring its EV operations. The BlueOvalSK Battery Park, once heralded as a cornerstone of America’s EV manufacturing future, is no more.

Why This Is Happening

Taha Abbasi identifies several converging factors driving the pullback. First, policy uncertainty: the shifting political landscape has made long-term investment calculations difficult. Companies making decade-long capital commitments need regulatory stability, and the whipsaw between different administration priorities has eroded confidence.

Second, demand reality: EV adoption, while growing, has not met the most optimistic projections that underpinned many factory investment decisions. When projected demand softens, the business case for billion-dollar manufacturing facilities weakens accordingly.

Third, global competition: countries like China, South Korea, and Germany offer aggressive incentives and established supply chain ecosystems that make domestic US production less economically attractive in comparison.

The Ripple Effects

The loss of 38,000 jobs is significant, but the ripple effects extend further. Each manufacturing job typically supports 3-5 additional jobs in the surrounding community through services, construction, and supply chain activities. The communities that were promised these investments — many in rural or economically distressed areas — are left with neither the old economy nor the new one.

As Taha Abbasi observes, “The transition to clean energy was never going to be linear. But the scale of this pullback suggests systemic issues that go beyond normal business cycle fluctuations. We need policy frameworks that provide investment certainty regardless of which party holds power.”

Bright Spots Amid the Gloom

Not all news was negative. Ford and CATL announced plans to bring 2,100 jobs to Kentucky. Anthro Energy committed to 110 new battery manufacturing jobs in the state. In Texas, Toyo Solar plans a $26.7 million solar manufacturing facility creating about 750 jobs. These investments show that opportunity exists where policy, infrastructure, and workforce alignment converge.

What It Means for the EV Future

The clean energy investment pullback doesn’t mean the transition is over — it means the transition is entering a more realistic phase. Taha Abbasi believes the companies that survive this contraction will emerge stronger, with more disciplined cost structures and market-validated demand. But in the near term, expect continued volatility in the clean energy investment landscape as the industry adjusts to a more sober reality.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com