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According to a report by the International Finance Corporation, about 40% of projects announced in the first year of implementation of the Biden administration’s industrial and climate infrastructure spending policies have been delayed or temporarily halted. Financial Times The investigation was published this week.
Inflation Reduction Act The Chips and Science Act offered more than $400 billion in tax credits, loans and grants to spur development of the cleantech and semiconductor supply chain in the United States, but of the announced projects worth at least $100 million, a total of $84 billion has been put on hold for months or years or paused indefinitely. a report He added that the total value of these projects amounted to $227.9 billion.
Among the biggest projects mentioned in the report that have been put on hold are Enel (OTCPK:ENLAY)’s $1 billion solar panel plant in Oklahoma, Albemarle (ALB)’s $1.3 billion lithium refinery in South Carolina, and LG Energy’s $2.3 billion battery storage facility in Arizona.
Taiwan Semiconductor Manufacturing (TSM) has delayed the start of production at its second factory — part of a planned $40 billion project in Arizona — by two years.
Higher-than-expected labor and supply chain costs, slowing demand, and political uncertainty in a presidential election year have all prompted companies to change their plans, the report said.
F T The delays, she says, raise questions about the government’s ability to enact spending measures that would bring manufacturing jobs back to the United States, and highlight the failure to enact reforms that would make it easier to build major projects.
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