Abandoned billion-dollar battery factory in Arizona highlights challenges facing green manufacturing

A billion-dollar battery factory planned in Buckeye, Arizona, by Kore Power Inc. was abandoned, along with other green factories nationwide, due to soaring costs, high interest rates, and slow EV demand. Trump’s tax-and-spending package signed into law phases out green subsidies, affecting clean-energy projects and jobs, as well as US competitiveness against China.

Kore Power Inc. faced rising costs and delays due to inflation and permitting issues, leading to adjustments and downsizing. The company secured a loan commitment from the Energy Department but faced uncertainty over federal incentives. The cancellation of the Buckeye plant and other green projects signals a darkening outlook for the sector, especially for EV manufacturers.

Despite setbacks, LG Energy Solution is moving forward with a $3 billion EV battery facility in Queen Creek, Arizona, aiming to employ 1,500 workers by 2027. The company plans to contribute to a local battery ecosystem, highlighting the perseverance of some green initiatives amidst policy shifts affecting the industry. Buckeye’s mayor remains hopeful for future green energy projects in the region.

Read more at Yahoo Finance: Ghost factories are a warning sign for green manufacturing’s future