This Week in Climate & Clean Energy Wins: Week of 2/24:

This week, companies continued to make investments in battery production, with LG Chem announcing a $75 million investment in Piedmont Lithium that secured key lithium supplies. Tesla turned its focus to the US, scaling back plans in Germany to qualify for Inflation Reduction incentives. Sewon America and the Shyft group both announced new projects that will bring hundreds of new jobs to  Georgia and Michigan. Hertz and Blink provided hundreds of customers with EV rentals for Super Bowl travel and Sunrun Solar shattered a seven year standing record for the quarterly solar power installations. Toyota made a commitment to produce 10,000 EVs a month in the U.S. by 2026, shifting its position on the urgency of transitioning to EVs and catching up to others in the industry.

New reports revealed Republican-held states and Congressional districts are reaping the largest benefits from the Inflation Reduction Act, averaging $4,221 per person in new capital investment from the law. The U.S. is now the world’s second largest EV market, having sold 1 million EVs in 2022. This number is set to grow to 1.6 million in 2023. Demand for offshore wind energy doubled in 2022, and investments tripled, according to the 2023 U.S. Offshore Wind Market Report. And, despite fears of increased coal use caused by the war in Ukraine, renewable energy is growing exponentially in Europe. Solar energy capacity has doubled since 2018 and is on track to triple by 2027. 

The Biden Administration continues to provide sweeping clean energy investments. This week, The Congressional Budget Office estimated that it will inject $374 billion into the clean technology sector over the next decade. Some expect that could catalyze $1.7 trillion in private investments. The Administration also announced $550 million in grants administered to disadvantaged communities for reducing legacy pollution and gaining access to clean energy, and more than $68 million in awards for 53 small businesses across 23 states, working on projects to develop emission-cutting technology, clean energy conversion, and climate studies. They also announced $2.5 billion for programs designed to cut pollution,  launched several new programs to support the development of floating offshore wind development, and announced the first-ever U.S. wind energy lease sale in the Gulf of Mexico. The move will open 300,000 acres of offshore waters for wind development off the coasts of Texas and Louisiana, and has the potential to power 1.3 million homes. 

Finally, on the state level, a new study from RMI found that Michigan could attract $26 billion in clean energy investments from the Inflation Reduction Act, creating 34,000 jobs in the state. A report released by the Rural Energy Project for America (REAP) highlighted the first-person impact of the Inflation Reduction Act – which is providing REAP with $10 million over ten years to advance clean energy projects in rural communities of Georgia, Ohio, Michigan, and various other states. 

This week companies announced multi-million dollar investments in clean energy projects in Georgia and Michigan, creating hundreds of new jobs. LG Chem made a deal securing the production of batteries for half a million EVs. Sunrun Solar broke the record for quarterly solar power installations and, thanks to the Inflation Reduction Act, Tesla is shifting battery production efforts to the U.S.: 

• LG Chem announced that it expects to extract enough lithium to support the production of batteries for 500,000 EVs. [Automotive Logistics, 2/20/2023]
  • After investing $75 million for a 6% stake in Piedmont Lithium, LG Chem secured a supply of spodumene concentrate in the only North American mine capable of production this year.
• Sewon America announced they’re investing $300 million to create 740 new clean energy jobs. [Business Facilities, 2/21/2023]
  • The automobile body parts manufacturer is expanding the workforce in their Rincon, Georgia Hyundai Metaplant.
• Hertz and Blink provided free EV charging for travelers during the Super Bowl. [Clean Technica, 2/19/2023]
  • The rental car giants teamed up to provide hundreds of rental EVs to customers in Arizona for the big game. 
• With EV demand skyrocketing, Toyota announced plans to begin producing electric SUVs in 2025. [Electrek, 2/21/2023]
  • A reversal of the company’s previously critical stance on EVs, they now project more than 10,000 EVs per month by 2026.
• Sunrun Solar installations deployed 275.5 MW of solar panels, breaking the record for quarterly solar power installation in the fourth quarter of 2022. [Bloomberg, 2/22/2023]
  • The previous record of 272 MW was reached in 2015, showing the exponential growth of the clean energy industry in the last year.
• Thanks to Inflation Reduction Act incentives, Tesla announced it will focus on battery cell production in the U.S. [Reuters, 2/22/2023]
  • Tesla plans to scale back Germany battery plans to qualify for Inflation Reduction Act clean energy credits.
• The Shyft Group announced a $16 million expansion to produce EVs in Michigan. [Thomas Net, 2/23/2023]
  • The project will create 680 new jobs and is projected to manufacture 3,000 EVs annually.

New reports this week revealed that the U.S. is now the world’s second largest EV market, Republican-held states are reaping the largest benefits from the Inflation Reduction Act, and demand for offshore wind doubled, while investments tripled in 2022. Overseas, renewable energy is growing exponentially with solar energy on track to triple by 2027 in Europe. 

• With nearly 1 million EVs sold in 2022, the U.S. is now the world’s second largest EV market. [Yahoo, 2/20/2023]
  • New EV manufacturing capability and federal tax credits are expected to drive total U.S. EV Sales to around 1.6 million in 2023.
• Republican-held states and Congressional districts are reaping the largest benefits from the Inflation Reduction Act. [The Guardian, 2/22/2023]
  • Republican states average $4,221 per person in new capital investment from the Inflation Reduction Act, while Democratic states average $2,427 per capita.
• Renewable energy is growing exponentially in Europe, solar energy capacity doubling since 2018 and on track to triple by 2027. [Vox, 2/21/2023] 
  • The trend is bolstered by falling costs of renewable energy and increased fossil fuel costs, and is progressing despite fears that the war in Ukraine would push the continent towards coal use. 
• The 2023 U.S. Offshore Wind Market Report found that demand for offshore wind doubled in 2022 and investments tripled. [The Hill, 2/21/2023]
  • Offshore wind-related contracts increased by 36% in 2022, and long-term offshore wind targets by state rose 79%.

The Biden Administration announced $550 million in grants to disadvantaged communities for reducing pollution, more than $68 million in awards for small businesses fighting climate change, an additional $2.5 billion for programs designed to cut pollution, and the first-ever wind energy lease sale in the Gulf of Mexico; acres that have the potential to power 1.3 million homes.  

• The Congressional Budget Office estimates that it will inject $374 billion into the clean technology sector over the next decade. 
  • Some expect that could catalyze $1.7 trillion in private investments. [Clean Technica, 2/22/2023]
• The Department of Energy announced $550 million in grants administered to disadvantaged communities for reducing legacy pollution and gaining access to clean energy. [Reuters, 2/23/2023]
  • The EPA will fund 11 organizations to invest in community-led projects in areas that have been historically overburdened by air and water pollution.
• The Department of Energy announced more than $68 million in awards for small businesses developing technologies to cut emissions and study climate. [Department of Energy Press Release, 2/22/23] 
  • The awards will go to 53 small businesses across 23 states, working on projects spanning from developing tools for climate research to advanced materials and technologies for clean energy conversion. 
• The Biden Administration announced $2.5 billion to cut pollution and deliver economic benefits to communities across the country. [Department of Energy Press Release, 2/23/23]
  • The funding will go toward two carbon management programs to jumpstart investments in transformative carbon capture systems and carbon transport and storage technologies. 
• The Biden Administration announced the first-ever U.S. wind energy lease sale in the Gulf of Mexico, opening 300,000 acres of offshore waters for wind development. [CNN, 2/22/2023]
  • The waters proposed for leases are off the coasts of Texas and Louisiana, and have the potential to power 1.3 million homes.

• The Department of Energy launched several new programs to support the development of floating offshore wind development. [Department of Energy Press Release, 2/22/2023]
  • These include the West Coast Offshore Wind Transmission Study, a 20 month analysis to examine how to expand transmission to floating offshore wind off the west coast; expansion of the National Offshore Wind Research and Development Consortium; initiation of the Offshore Wind Operations and Maintenance Roadmap; and Lidar Buoy Deployment in Hawaii. 

States continue to see massive economic benefits from the Inflation Reduction Act: 

• A new study from RMI found that Michigan could attract $26 billion in green energy from the Inflation Reduction Act. [Michigan Radio, 2/19/2023]
  • This could create 34,000 new clean energy jobs in the state. 
• A report released by the Rural Energy Project for America (REAP), shared renewable energy stories from farmers, ranchers, and small business owners across the country, including in Georgia, Ohio, and Michigan. [Environmental Law and Poverty Center, 2/22/23]
  • The Inflation Reduction Act is providing REAP with $10 million over the next ten years to help advance clean energy projects in rural communities.