How Trump's EV rollback is hitting America's auto-factory revival

America’s electric vehicle manufacturing revival is losing momentum as billions of dollars in planned EV and battery investments are cancelled, delayed or scaled back amid weaker demand and President Donald Trump’s rollback of policies that supported the industry.A Reuters investigation found that nearly $20 billion in EV-related projects were cancelled in 2025, while new investment announcements fell to about $6.5 billion from a peak of $55 billion in 2023. The cancelled projects had represented around 27,000 promised jobs, according to Reuters’ analysis of Atlas Public Policy data.The impact is visible at Lordstown, Ohio, where a $2.3 billion battery plant halted production in January. About 480 workers were indefinitely laid off, while another 850 were told they would not be needed for months.The reversal is notable because much of the earlier investment went to Republican-leaning states. Reuters found that 87 percent of announced EV-related investment was in states won by Trump in 2024, while about 80 percent of cancelled projects were in those states.The slowdown comes as the US EV market was already facing weaker-than-expected demand. Automakers had scaled up production and battery capacity based on forecasts of rapid EV adoption, but sales failed to grow at the expected pace, forcing companies to rethink investment plans.Trump’s decision to end the $7,500 federal EV tax credit added another setback. The credit had helped lower the upfront cost of electric vehicles, but its removal weakened an important incentive for buyers as automakers were already cutting back on EV plans.The policy shift also affected companies that had expanded in anticipation of sustained government support. Ford, for instance, has moved to repurpose part of its planned EV manufacturing capacity for gasoline-powered vehicles, reflecting the changing economics of the US auto market.Trump’s broader push to roll back Biden-era EV policies has added uncertainty for automakers and battery manufacturers. The administration has argued that the earlier incentives distorted the market by pushing consumers towards electric vehicles, while its policy now gives greater room for gasoline-powered cars and trucks.Tariffs have also raised costs for some battery materials and components, while tighter immigration policies have complicated efforts by companies to bring specialised engineers and technicians to new US plants.Catch the latest World News and Live updates. Download the TOI app.