Under the Biden administration’s Inflation Reduction Act, the United States was on track to meet its domestic battery manufacturing needs for electric vehicles (EVs) by 2030. However, this progress has slowed sharply in early 2025, as clean energy investments dropped from an average of $1 billion monthly to just $176 million in January, according to E2. The shift follows President Trump’s decision to halt key programs, including the National Electric Vehicle Infrastructure (NEVI) initiative and several high-profile EV-related projects.
The impact is already being felt across the U.S. auto sector. Major initiatives like Kore Power’s planned $1 billion battery plant in Arizona have been canceled. Aspen Aerogels paused its Georgia expansion and redirected efforts to existing facilities in China and Mexico. This uncertainty, driven by new tariffs and regulatory shifts, has cooled enthusiasm among manufacturers and suppliers—many of whom are now reevaluating their American operations.
Despite these setbacks, some automakers remain committed. Hyundai recently opened its $7.6 billion EV facility in Georgia and is investing $5 billion in steel production in Louisiana. Toyota, LG Energy Solutions, and Ford also continue building or operating major U.S. battery plants. These efforts suggest confidence in the long-term potential of American EV infrastructure, even amid policy turbulence.
Still, the U.S. lags far behind China, where electric and new energy vehicles (NEVs) already account for nearly half of all new car sales. In contrast, EVs made up just 8.1% of American vehicle sales in 2024, according to Cox Automotive. China’s aggressive investment strategy, backed by strong government support, has allowed it to scale EV adoption and manufacturing far more rapidly.
Vontier CEO Mark Morelli recently commented on the need for massive investment in EV infrastructure, stating that widespread adoption “requires the government to really step forward.” From grid upgrades to fast-charging networks, the scale of transformation needed in the U.S. remains immense—but not impossible.
Despite the challenges, there is still a clear path forward for investors. As consumer demand for EVs continues to rise and state-level initiatives gain traction, the need for robust, reliable charging infrastructure is greater than ever. High-speed charging networks, especially in underserved regions, will be critical in closing the gap with global competitors.
Now is the time to invest in EV charging stations. With long-term growth in electrification all but guaranteed, today’s infrastructure investments could become tomorrow’s competitive edge—helping the U.S. catch up to China and meet its clean energy goals.
