A new report from the Princeton University ZERO Lab revealed potentially devastating impacts on the U.S. auto industry if federal regulations and tax credits related to clean vehicle adoption are repealed. The report shows that in the absence of these federal initiatives, auto manufacturing from assembly down through the supply chain would face significant losses.  

Specifically, the report found that killing the clean vehicles tax credits would result in: 

• The potential loss of the nation’s entire portfolio of planned construction and expansion projects for U.S. electric vehicle (EV) assembly. 

• Up to 50% of existing EV assembly facilities could be at risk of cancellation or closure. 

• 29%-72% of current battery cell manufacturing would be at risk of closure, in addition to all planned facilities. 

• Additional unquantified impacts on domestic materials, parts, and component manufacturers in the EV supply chain. 

According to the EV Jobs Hub, a resource produced by the BlueGreen Alliance Foundation and Atlas Public Policy, there are currently 533 manufacturing facilities in the EV sector, touching nearly every state. 

In response to the report’s findings, the BlueGreen Alliance released the following statement from Executive Director Jason Walsh: 

“Taking a sledgehammer to a growing sector of the nation’s auto industry is a terrible idea. It will cost jobs immediately and severely hamper the nation’s ability to remain competitive as demand for clean vehicles grows worldwide. We’re talking about entire swaths of American manufacturing that would be decimated by proposed actions to kill advancement in the EV industry. These are American jobs, keeping communities and families afloat across the nation. The United States should be leading in this sector, not stubbornly sabotaging progress.”