Early Wins for the IRA: Manufacturing Revenue and Jobs Amidst Supply Chain Security
The Inflation Reduction Act promised to inject energy into the US quest for clean power. Let’s look at how it has done so far.
The US has experienced a green manufacturing boom since the IRA was signed, just 6 months ago. The American Clean Power Association announced that46 factories and nearly 20,000 new jobs are now in the works.
Solar panels components and construction have long been a concern for US energy watchers. Last year, the International Energy Agency (IEA) discussed the lop-sided distribution of manufacturing - with 80% dominated by China -here. While the US has a daunting task to achieve an independent solar supply chain, the outlook is looking sunnier:
When it comes to wind,usage isn’t a problem, but a vulnerable supply chain is. As the creation ofcritical supply chain infrastructureoriginally picked up speed, manufacturers expressed optimism. The positive sentiment was early however and after a punishing few years of financial losses, windturbine manufacturing in the US finally feels the wind at its back.
Finally, energy storage saw a boost just this week, with the US announcing new incentives for battery manufacturing, usage, and end of life recycling. These incentives are so enticing, European companies areexpanding their own operations into the US.
Our brief review of the Inflation Reduction Act illustrates significant early wins and plenty of cause for optimism for the future.
Originally published on our LinkedIn.
840 Apollo St Ste 100, El Segundo, CA email@example.com
Sign up to gain access to our thought leadership and learn more about our six climate themes.