Factory Investment Worth $114 Billion from Inflation Reduction Act Allocated to Swing States

By Better Today On Apr 6, 2024

TL/DR –

Since the Inflation Reduction Act was passed in 2022, manufacturers have announced approximately $114 billion in clean-tech investment, with nearly half focused on political swing states. The investments include factories for electric vehicles, big batteries, and renewable energy components, with different states attracting manufacturers for specific reasons, such as Michigan’s large labor force and low-cost power. The Act has boosted economic development and job creation in critical electoral states, although it remains to be seen whether this will translate into votes.

Clean-Tech Investment Surges Post-Inflation Reduction Act

Since the Inflation Reduction Act was enacted in 2022, manufacturers have announced clean-tech investments totaling $114 billion. The BloombergNEF report highlights nearly half of this investment targets key political swing states.

The climate law of President Joe Biden, a focal point in the upcoming election, has instigated substantial economic development and job creation in pivotal states. It remains to be seen if this new manufacturing wave will influence voting patterns. Former President Donald Trump shows signs of contesting the law, which did not receive any Republican votes.

The report details $53.6 billion, approximately half of the total clean-tech investment, is earmarked for six swing states: Arizona, Georgia, Michigan, Nevada, North Carolina, and Pennsylvania.

These investments will fuel the creation of factories for electric vehicle production, large batteries, and components for wind and solar farms. Each swing state offers unique advantages attracting these investments. Michigan touts a large labor force and cost-effective power, while Georgia offers regulatory and fiscal support from local governments.

Further reading: Red States to Reap the Biggest Rewards From Biden’s Climate Package