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Some 40% of the initiatives introduced within the first yr of implementing the Biden administration’s signature industrial and local weather infrastructure spending insurance policies have been delayed or paused, in keeping with a Monetary Occasions investigation posted this week.
The Inflation Discount Act and Chips and Science Act supplied greater than $400B in tax credit, loans and grants to stimulate growth of a U.S. clear tech and semiconductor provide chain, however of introduced initiatives value at the least $100M, a complete of $84B has been positioned on maintain for a number of months or years or paused indefinitely, the report stated, including the whole valuation of those initiatives was $227.9B.
Among the many largest initiatives cited within the report which might be on maintain are Enel’s (OTCPK:ENLAY) $1B photo voltaic panel manufacturing facility in Oklahoma, Albemarle’s (ALB) $1.3B lithium refinery in South Carolina, and LG Vitality’s $2.3B battery storage facility in Arizona.
Taiwan Semiconductor Manufacturing (TSM) has delayed the beginning of manufacturing at its second fab – a part of a deliberate $40B undertaking in Arizona – by two years.
Greater than anticipated labor and provide chain associated prices, slowing demand, and lack of coverage certainty in a presidential election yr have induced firms to vary their plans, in keeping with the report.
FT says the delays increase questions over the federal government’s means to enact spending measures that will deliver again manufacturing jobs to the U.S. and spotlight the failure to enact allowing reform to facilitate the development of main initiatives.
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