Urdu Report Desk
Investment in electric vehicle and battery factories in the United States has been disrupted following policy changes by the administration of President Donald Trump, while the cancellation of billion-dollar projects has put thousands of jobs at risk.
According to an exclusive Reuters report, investment in US auto manufacturing more than doubled between 2019 and 2024, with the electric vehicle sector accounting for the largest share of the additional investment.
Sharp Drop in New Investment
However, projects worth around $20 billion were canceled last year, while announcements of new investments were limited to approximately $6.5 billion. That was only a fraction of the record $55 billion in new investment announced in 2023.
Projects canceled between January 2025 and August 24, 2026 were expected to create around 27,000 jobs, according to the report.
The actual number could be higher because some projects did not specify expected employment and the figures do not include projects that were scaled back rather than completely canceled.
Ohio Battery Plant Faces Impact
One prominent example is Lordstown, Ohio, where a $2.3 billion battery plant was established through a joint venture between General Motors and South Korea’s LG Energy Solution.
The plant halted operations in January because of weak electric vehicle sales. Around 480 employees were placed on indefinite leave, while another 850 workers were reportedly left without work for several months.
Policy Changes Affect Investment Decisions
Media reported that demand for electric vehicles in the United States had already been growing more slowly than expected before tax incentives were ended.
The White House has argued that former President Joe Biden’s administration created “artificial demand” for electric vehicles through subsidies.
The Trump administration says it is instead focusing on attracting new industrial investment to the United States through deregulation, tax cuts and trade agreements.
Auto Manufacturing Jobs Decline
Overall employment in US auto manufacturing also declined by 1.3% after January 2025, reaching about 963,000 jobs in August, according to the report.
Some companies are considering converting closed or underused battery plants to produce batteries for energy storage. However, the process could take time, and demand in the energy storage sector is not considered sufficient to utilize all of the production capacity originally built for electric vehicles.
