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We read the Heritage Foundation’s Project 2025 playbook so you don’t have to.
When former President Donald Trump exited the Oval Office in January 2021, he left behind a record of environmental rollbacks unrivaled in modern U.S. history. Over his 1,461 days as commander-in-chief, Trump replaced, eliminated, or otherwise dismantled more than 100 environmental rules — at least — from repealing the Clean Air Act to allowing coal plants to dump toxic wastewater into lakes and rivers to declaring open season on endangered gray wolves.
President Joe Biden then rolled back most of the rollbacks, largely before their full impacts could be felt, which is why some experts say the most significant climate consequence of Trump’s presidency was actually the loss of four years that could have moved the green transition forward.
Had all Trump’s policies gone into effect, the nonpartisan Rhodium Group estimated at the end of 2020, they would have added an additional 1.8 gigatons of CO2-equivalent to the atmosphere by 2035 — more than the annual energy emissions of Germany, Britain, and Canada combined. But even though we never felt the full brunt of them, the medical journal The Lancet estimated that the policies undertaken during his presidency were responsible for 22,000 deaths in 2019 alone due to sharp increases in things like asthma, heart disease, and lung cancer.
Now Trump is once again the presumed Republican nominee and currently leads Biden in general election polls. Were he to win, he has a ready roadmap for building on his dubious environmental legacy: Project 2025, a 920-page document developed by the right wing think tank The Heritage Foundation.
Project 2025 isn’t just a climate plan, or course — it’s a comprehensive proposal, covering everything from immigration to abortion, education, pornography, and child labor. Though billed as a “presidential transition project,” its wishlist includes numerous actions that would require Republican control of both chambers of Congress (admittedly possible, though currently looking like a longshot) to enact. Undaunted, the document sets its sights on the Inflation Reduction Act, Biden’s landmark climate legislation, which — since the U.S. is the world’s second-largest greenhouse gas emitter — is all but necessary to keep the planet off the path to 1.5 degrees Celcius.
Here is how, precisely, Project 2025 aims to gut the IRA, shrink environmental protections, and slow forward momentum on climate change.
“‘Cheap grace’ aptly describes the Left’s love affair with environmental extremism. Those who suffer most from the policies environmentalism would have us enact are the aged, poor, and vulnerable. It is not a political cause, but a pseudo-religion meant to baptize liberals’ ruthless pursuit of absolute power in the holy water of environmental virtue … They would stand human affairs on their head, regarding human activity itself as fundamentally a threat to be sacrificed to the god of nature.”
Republicans have cannily turned “climate” into another culture war buzzword. As with Critical Race Theory before it, this rhetoric strategy divorces the climate movement from what it actually is — a disparate and diverse constellation of ideas for how to move forward in the face of the reality of human-driven global warming — and flattens it into a boogeyman that voters can easily dismiss. Rather than allow for honest debate over the upsides and drawbacks of LNG or of preserving ecosystems versus quickly building out renewables, the effect is to shut down any and all conversation before it can even start.
Project 2025 both outlines and embodies this strategy. In the foreword, Heritage Foundation president Kevin D. Roberts bafflingly characterizes climate as a “pseudo-religion”; elsewhere in the document, “climate extremism” is often lumped alongside “abortion, gender radicalism … and other woke ideas.”
For good measure, the Project 2025 playbook also uses religious metaphors to code any concern about the environment as being morally wrong or even evil. Republicans have already picked up on this cue: “We should not be bending the knee to this new religion … We are flogging ourselves and losing our modern way of life bowing to this new god of climate,” Florida Governor Ron DeSantis argued during a Republican presidential debate last year.
“The National Labs have been too focused on climate change and renewable technologies. American science dominance is critical to U.S. national security and economic strength.”
As part of the Inflation Reduction Act, the Biden administration channeled $1.5 billion to the Department of Energy’s national laboratories for “innovative research in clean technologies” and “advancing U.S. energy security.” This has been essential for “de-risking” the otherwise prohibitively expensive technological advancements necessary for reaching net zero.
Project 2025, naturally, wants none of that: “The three National Labs run by DOE’s [National Nuclear Security Administration] should continue to focus on national security issues,” Bernard McNamee, the former commissioner of the Federal Energy Regulatory Commission under Trump, writes in the document’s chapter on revamping the department. Additionally, the “ill-advised attempt to expand the National Science Foundation’s mission from supporting university research to supporting an all-encompassing technology transition” (a mischaracterization) should be reconsidered, and “there should be a review to measure, prioritize, and consolidate DOE programs based on a range of beneficial factors, including degree of relationship to national security.” (While addressing the nation’s climate goals is an NSF priority, it is not done at the expense of supporting university research. Also, the current director of the NSF is a Trump appointee).
The Trump administration was memorably hostile toward science, and there are no signs he’ll change his heart during a second term; he’s already vowed to revive “Schedule F,” which reclassifies many government researchers and scientists as at-will employees, making them easier to “clean out” if they “frustrate his policies.”
Still, it does appear that the Heritage Foundation sees some usefulness for scientists: “The next administration should fund the design, development, and deployment of new nuclear warheads, including the production of plutonium pits in quantity,” Project 2025 says.
“The next conservative Administration should rescind all climate policies from its foreign aid programs (specifically USAID’s Climate Strategy 2022–2030 ); shut down the agency’s offices, programs, and directives designed to advance the Paris Climate Agreement; and narrowly limit funding to traditional climate mitigation efforts.”
The United States is the single greatest historical contributor to climate change, but Project 2025 has little sympathy for nations that might be suffering as a result. “The [Biden] administration has incorporated its radical climate policy into every USAID initiative,” Max Primorac, a Heritage Foundation research fellow, complains in the document. “It has joined or funded international partnerships dedicated to advancing the aims of the Paris Climate Agreement and has supported the idea of giving trillions of dollars more in aid transfers for ‘climate reparations.’”
Notably, Biden has not promised climate reparations — despite Trump and other Republicans’ frequent claims to the contrary. And while climate change is “a top driver of humanitarian need and human suffering, particularly for the poorest countries,” according to the United Nations, the former president slashed $200 million from environmental initiatives in his 2019 budget, including investments to help nations move away from heavy carbon-emitting industries.
“Taxpayer dollars should not be used to subsidize preferred businesses and energy resources, thereby distorting the market and undermining energy reliability.”
Among the programs and offices Project 2025 wants to eliminate (or at least substantially reduce) funding for are: the Climate Hub Office; the Clean Energy Corps, the Office of Domestic Climate Policy; the Office of Energy Efficiency and Renewable Energy; the Grid Deployment Office; the Interagency Working Group on the Social Cost of Carbon; the Conservation Reserve Program; the Office of Clean Energy Demonstrations; the Office of Environmental Justice and External Civil Rights; “the activities of EPA advisory bodies”; the Office of State and Community Energy Programs; ARPA-E; the DOE Loan Program Office; the Office of Fossil Energy and Carbon Management; “grant programs for things like energy storage and the testing of grid-enhancing technologies”; “carbon capture utilization and storage programs”; the Greenhouse Gas Reporting Program; the Bureau of Energy Resources; the Office of Emergency Management; the National Flood Insurance Program; and the National Oceanic and Atmospheric Administration (more on that below).
“Support repeal of massive spending bills like the Infrastructure Investment and Jobs Act and Inflation Reduction Act, which established new programs and are providing hundreds of billions of dollars in subsidies to renewable energy developers, their investors, and special interests, and support the rescinding of all funds not already spent by these programs.”
Project 2025 opposes green subsidies across the board. It’s especially twitchy about programs aimed at helping “the private sector deploy and market clean energy and decarbonizing resources” — because, supposedly, the “government should not be picking winners and losers.”
Still, while it’s uncertain how much damage a Republican president could do to the Inflation Reduction Act without the help of a conservative-controlled Congress, Project 2025 makes clear there are lots of places conservatives can chip away, including going after “subsidies of electric vehicles,” “subsidies for transit expansion,” and subsidies renewables like wind and solar. Additionally, the Office of Energy Efficiency and Renewable Energy “is a conduit for taxpayer dollars to fund progressive policies, including decarbonizing the economy and renewable resources.” That won’t do: “Eliminate EERE,” it says, or otherwise defund it.
“While individual investors may prefer to invest in ‘green’ companies, ‘woke’ companies, or companies with greater board diversity, and may even be willing to sacrifice some financial gains to do so, the question relevant to [the Department of Labor] is whether, and under what conditions, fiduciaries should be permitted to follow this path as well.”
If we’re being honest, though, isn’t the whole “ESG is evil” thing kind of last year?
“The new Administration’s review will permit a fresh look at past monument decrees and new ones by President Biden. Furthermore, the new Administration must vigorously defend the downward adjustments it makes to permit a ruling on a President’s authority to reduce the size of national monuments by the U.S. Supreme Court.”
President Trump was responsible for the most significant reduction in protected land in U.S. history. When he took office, Biden reinstated the protections — mainly in Utah’s Bears Ears and Grand Staircase-Escalante. Project 2025 prioritizes rolling back the rollback of the rollback, but making it stick by taking the case to the conservative-controlled Supreme Court.
The former acting Bureau of Land Management director under Trump, William Perry Pendley, writes in the section on reforming the Department of the Interior that Biden is “abusing National Environmental Policy Act processes, the Antiquities Act, and bureaucratic procedures to advance a radical climate agenda,” and directs an incoming Republican president to “seek repeal of the Antiquities Act.” Republicans and Democrats alike have used the Antiquities Act over the decades to protect scenic and culturally significant places, including the Grand Canyon, Zion, and Olympic National Parks. Any Supreme Court ruling could effectively curb the ability of future presidents to protect scenic and culturally important parts of the country.
“NOAA consists of six main offices ... Together, these form a colossal operation that has become one of the main drivers of the climate change alarm industry and, as such, is harmful to future U.S. prosperity.”
Thomas F. Gilman, writing on reforms for the Department of Commerce, gets right to the point: “Break up NOAA.” The agency’s “emphasis on prediction and management seems designed around the fatal conceit of planning for the unplannable,” he claims, adding, that “its current organization corrupts its useful functions.”
In practice, that would mean the National Weather Service should “fully commercialize its forecasting operations,” since “Americans rely on weather forecasts and warnings provided by … private companies such as AccuWeather,” Gilman writes. It’s a notable shoutout: Barry Lee Myers, the former CEO of AccuWeather, was briefly a Trump nominee to, uh, run NOAA.
Gilman has ideas for the Office of Oceanic and Atmospheric Research, too, writing that it “provides theoretical science” and is “the source of much of NOAA’s climate alarmism,” and should therefore be “disbanded.” Data from the National Hurricane Center is further ordered to be “presented neutrally, without adjustments intended to support any one side in the climate debate.”
Echoing the Trump administration’s hostility toward the sciences, he goes on to allege that “scientific agencies like NOAA are vulnerable to obstructionism … if political appointees are not wholly in sync with administration policy” — never mind that disagreement is one of the most essential parts of scientific research and progress.
But don’t worry: Project 2025 also calls for an elevation of … “the Office of Space Commerce.” Phew.
Republicans are going to make dishwasher cycle times a culture war or die trying.
Project 2025 dictates that “Congress should reform the Natural Gas Act” to “eliminate political and climate-change interference in DOE approvals of liquefied natural gas exports.” Currently, the DOE must decide if it is in the “public interest” to allow LNG exports to non-free trade agreement countries — the only part of the permitting process that could even potentially consider the export terminal’s impacts on frontline communities or their effect on climate change more largely
How? By narrowing the Natural Gas Act to only consider “whether there is a need for the natural gas” and the “impacts of the actual pipeline itself, not indirect upstream and downstream effects.”
The next Republican president should “immediately” reopen the Arctic to drilling, expand the controversial Willow drilling project, max out offshore oil and natural gas lease sales, and restart coal leasing in Wyoming and Montana, the authors write.
Mandy Gunasekara, Trump’s former Environmental Protection Agency chief of staff, details almost gleefully how the agency’s regulatory powers will be dismantled, from preventing downwind states from “over-controlling” their upwind neighbors to loosening car emission standards and beyond.
Since 1968, California has been allowed to set stricter vehicle emission limits than the federal government thanks to a Clean Air Act waiver; other states are welcome but not required to opt in. As president, Trump revoked California’s right to include greenhouse gases in its emissions considerations and barred other states from adopting its criteria. That seems like it’s back on the table — and could be headed to a consequential decision in the Supreme Court.
Project 2025 proposes a fleet-wide average of 35 miles per gallon, far below current benchmarks of 49 miles per gallon by 2026 and 58 miles per gallon by 2032.
There is no question that the management of wild horses and burros is a big problem for the Western United States. But Project 2025 waves off strategies like “expanded adoptions” and “more effective use of fertility controls” as “not enough,” writing that “Congress must enact laws permitting the BLM to dispose humanely of these animals.”
Project 2025 aims not only to gut the Endangered Species Act, but also to “direct the Fish and Wildlife Service to end its abuse of Section 10( j) of the ESA,” which is being used to reintroduce grizzly bears in Washington state and wolves in Colorado.
Project 2025 says that “the Department of Energy should end the Biden Administration’s unprovoked war on fossil fuels, restore America’s energy independence, oppose eyesore windmills built at taxpayer expense, and respect the right of Americans to buy and drive cars of their own choosing, rather than trying to force them into electric vehicles and eventually out of the driver’s seat altogether in favor of self-driving robots.” But as far as roadmaps go, that doesn’t look much like a way forward — it looks like holding back the inevitable. If that’s the case, then self-driving robots start to look good.
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On budget negotiations, Climeworks, and DOE grants
Current conditions: It’s peak storm season in the U.S., with severe weather in the forecast for at least the next six days in the Midwest and East• San Antonio, Texas, is expected to hit 108 degrees Fahrenheit today• Monsoon rains have begun in Sri Lanka.
The House Budget Committee meeting to prepare the reconciliation bill for a floor vote as early as next week appears to be a go for Friday, despite calls from some Republicans to delay the session. At least three GOP House members, including two members of the Freedom Caucus, have threatened to vote no on the budget because a final score for the Energy and Commerce portion of the bill, which includes cuts to Medicaid, won’t be ready from the Congressional Budget Office until next week. That is causing a “math problem” for Republicans, Politico writes, because the Budget Committee “is split 21-16 in favor of Republicans, and Democrats are expecting full attendance,” meaning Republicans can “only lose two votes if they want to move forward with the megabill Friday.” Republican Brandon Gill of Texas is currently out on paternity leave, further reducing the margin for disagreement.
House Speaker Mike Johnson is also contending with discontent in the ranks over cuts to clean energy tax credits. “It’s not as bad as I thought it was going to be, but it’s still pretty bad,” New York Republican Andrew Garbarino, a co-chair of the House Bipartisan Climate Solutions Caucus, told Politico on Thursday. But concerns about the cuts, which would heavily impact Republican state economies and jobs, do not appear to be a “red line” for many others, including Georgia’s Buddy Carter, whose district benefits from Inflation Reduction Act credits for a Hyundai car and battery plant that is among the targets for elimination. You can learn more about the cuts Republicans are proposing to the IRA in our coverage here.
The Swiss carbon removal company Climeworks is preparing for significant cuts to its workforce, citing the larger economic landscape and the Trump administration’s lack of consistent support. The company currently has 498 employees, but is undergoing a consultation process, indicating it is looking to cut more than 10% of its workforce at once, SwissInfo.ch reports. “Our financial resources are limited,” Climeworks’ co-founder and managing director Jan Wurzbacher said in comments on Swiss TV.
Though Interior Secretary Doug Burgum is a known proponent of carbon capture, and there had been excitement in the industry that Trump’s attempts to expedite federal permitting would benefit carbon storage sites, the administration has also hollowed out the Department of Energy’s carbon removal team, my colleague Katie Brigham has reported. The ongoing funding cuts and uncertainty have made it difficult to get information from the government that could affect Climework’s Project Cypress in Louisiana, although Wurzbacher stressed that “we are not currently aware that our project would be stopped.”
Energy Secretary Chris Wright announced in a Thursday memo that the department will be reviewing at least $15 billion worth of grants awarded to “power grid and manufacturing supply chain projects” under the Biden administration, Reuters reports. “With this process, the Department will ensure we are doing our due diligence, utilizing taxpayer dollars to generate the largest possible benefit to the American people and safeguarding our national security,” Wright said in his statement.
The memo goes on to note that the DOE plans to prioritize “large-scale commercial projects that require more detailed information from the awardees for the initial phase of this review, but this process may extend to other DOE program offices as the reviews progress.” Projects that don’t meet the DOE’s standards could be denied, as could projects of grantees who fail to “respond to information requests within the provided time frame, does not respond to follow-up questions in a timely manner.” As of last week, Wright told lawmakers, “we’ve canceled zero” existing projects so far, E&E News writes; the agency will reportedly be reviewing at least 179 different awards during its audit.
The number of National Weather Service offices ending 24-hour operations and severe weather alerts is increasing. On Thursday, The San Francisco Chronicle confirmed that California’s Sacramento and Hanford offices, which provide information to more than 7 million people in the Central Valley, have been forced to reduce service due to “critically reduced staffing.”
Eliminating 24-hour service is especially concerning for the Central Valley and surrounding foothills, where around-the-clock weather updates can be critical. “These are offices that have both dealt with major wildfire episodes most of the past 10 years, and we are now entering fire season,” Daniel Swain, a climate scientist at UCLA and UC Agriculture and Natural Resources, told the Chronicle. “That’s a big, big problem.” Swain additionally shared on LinkedIn a map he’d put together of regions in the U.S. that no longer have full-service weather coverage, including “a substantial chunk of Tornado Alley during peak tornado season and the entirety of Alaska’s vast North Slope region.” The NWS is additionally seeking to fill 155 vacancies in coastal states that could face risks as the Atlantic hurricane season begins at the end of the month, The Washington Post reports. An estimated 500 of 4,200 NWS employees have been fired or taken early retirements since the start of Trump’s term.
Heatmap’s “most fascinating” EV of 2025 just got pushed back to 2026. The Ram 1500 Ramcharger — which has a 140-mile electric range as well as a V6 engine attached to a generator to power the car when the battery runs out — is now set to launch in the first quarter of next year due to “extending the quality validation period,” Crain’s Detroit Business reported this week. Parent company Stellantis also pushed back the launch of its fully electric Ram 1500 REV until summer 2027, with a planned model year of 2028. “Our plan ensures we are offering customers a range of trucks with flexible powertrain options that best meet their needs,” Stellantis spokeswoman Jodi Tinson told Crain’s in an email. Though you now have even longer to wait, you can read more about the car Jesse Jenkins calls “brilliant” here.
GMC
The 2026 GMC Hummer EV just got even more ridiculous. “Thanks to the new Carbon Fiber Edition,” the 9,000-pound car “can zoom to 60 miles per hour in 2.8 seconds,” InsideEVs reports.
A conversation with Jillian Blanchard of Lawyers for Good Government about the heightened cost of permitting delays
This week I chatted with Jillian Blanchard, vice president of climate change and environmental justice with Lawyers for Good Government, an organization that has been supporting beneficiaries of the Inflation Reduction Act navigate the uncertainties surrounding tax credits and grant programs under the Trump administration. The reason I wanted to chat with Jillian is simple: the IRA is under threat for the first time under a Republican Congress. I wanted to understand how solar and wind projects could be impacted by the House Republican reconciliation bill and putting IRA tax credits in doubt. I learned a lot.
The following conversation was lightly edited for clarity.
Okay, Jillian, what’s the topline here? How would the GOP reconciliation bill impact individual projects’ development?
There are big chunks of the reconciliation bill that will have dramatic impacts on project development, including language that would repeal or phase out bipartisan and popular tax credits in a way that would make it very, very difficult to invest in projects. I can get into the weeds next.
But it’s worth saying first – the group of programs aside from tax credits that [House Republicans] would repeal represents every single part of America. Hundreds of projects that will not go forward if these programs are not going well. And they have several legally obligated grants that EPA has already mucked up in a litany of ways. But what they’re proposing to do is to pull the rug out from under those programs. On top of that they want to pull any unobligated funding out.
I think it’s extremely misrepresentative to say these are not big cuts. They’re significant cuts to clean air and clean water across the board.
Help me get into the weeds about how phasing out the credits will make it harder to invest in a project.
Right now, a bank might want to invest a certain amount of money in a clean energy project because they know on the back end they can get 30% or 40% back on their investment. A return through tax credits. They can bank on that, because tax credits are a guarantee.
Was that an intentional pun? “Bank”?
Yeah, it is. I love a good pun. You opened the floodgates, that was a mistake.
But anyway, the program itself was supposed to be around until at least 2032 and the bank could bank on those tax credits. That’s a big runway, because projects could get delayed and you could lock in the credit as soon as you started construction.
Now they’re doing a phase-out approach where if your project is not placed into service before a certain date, you don’t avoid the phase out. You don’t get any protections if you’re starting your project now or next year. It has to be placed in service before 2028 or else your project may not be eligible. You are constructing it, you are financing it, but then through no fault of your own – a storm or whatever – then suddenly that project is no longer entitled to get 30% or 40% back.
That’s a big risk. And banks don’t like risk.
Opposition on the ground also delays projects the way a storm does. Would this empower those opponents?
Oh, totally. Totally. If anyone wants to fight a project, a bank might be even less likely to invest in it. The NIMBYs for that particular project become a risk.
What would you tell a developer at this moment who is wondering about the uncertainty around the IRA?
I would tell them that now is the time to speak up. If they want to stay in this business and make sure their energy stays as low-cost as it already is, they need to speak up right now, no matter what their political party affiliation is. Make it clear solar isn’t going away, wind isn’t going away, storage isn’t going away. These are markets America needs to be competitive with the rest of the world.
Investors are only just now starting to digest what the proposed cuts will mean, especially for energy storage.
Is Wall Street too sanguine about the House of Representatives’ proposal to gut the Inflation Reduction Act? When the House Ways and Means Committee unveiled its language on the law on Monday — phasing out tax credits, implementing strict restrictions on business relationships with Chinese companies, and altering when projects are eligible for credits — some investors responded to the cutbacks by driving up the prices of some clean energy stocks.
The residential solar company Sunrun traded up on Tuesday by 8.6%, and the American solar manufacturer First Solar was up over 22%. (Stock movements on Monday were largely in response to the pause of the U.S.-China trade war, also announced that morning.)
“The early drafts of a Republican tax and spending bill weren’t as bad for renewables as feared,” wrote Barron’s. Morgan Stanley analysts used the same language — “not as bad as feared” — in a note to clients on the text. “Industry was bracing for way worse,” Don Schneider, the deputy head of public policy for Piper Sandler and a former Republican staffer on the Ways and Means Committee, wrote on X.
While many analysts — and, to be honest, journalists at Heatmap — have issued dire warnings about how the various provisions of the Ways and Means language could together make much of the IRA essentially impossible to use, even before the tax credits phase out, investors on Wall Street and in Washington seem to have shrugged them off. Some level of cutting was all but inevitable, and “not as bad as it could have been” is reason enough to celebrate — plus there’s also “it’ll probably change, anyway.”
There’s something to this. A group ofmoderate Republicans criticized the language on Wednesday as too restrictive, specifically citing changes to three overarching features of the tax credits: when projects would be eligible for tax credits, where companies are able to source components and materials, and whether companies are allowed to freely buy and sell tax credits generated by their projects. (Wouldn’t you know it, these complaints largely echo what Heatmap has written in the past few days.)
In the Senate, meanwhile, Republican Kevin Cramer of North Dakota, said that the text as written would be too damaging to advanced nuclear and enhanced geothermal generation. The phase-out timelines in the Ways and Means language are “too short for truly new technologies,” Cramer told Politico.
Pavan Venkatakrishnan, an infrastructure fellow at the Institute for Progress, told me that he expects the bill to evolve in a way to meet the concerns of Senate Republicans like Cramer.
“Given considerations both political and procedural, like the more flexible reconciliation instructions Senate Finance is afforded relative to House Ways and Means and the disproportionate impact current text entails for technologies Republicans traditionally favor, like nuclear, geothermal, and hydropower, I think it’s fair to say that this text will change over the coming weeks,” he said.
Finally, days after the Ways and Means committee made its thinking public, Wall Street seems to be catching on to the implications. The new foreign entities of concern rules pose a particularly huge danger to the renewable energy sector, according to Jefferies analyst Julien Dumoulin-Smith, and especially to energy storage, which would be the key provider of reliability on a renewable-heavy grid. Energy storage looks to account for almost 30% of new generator additions this year, according to the Energy Information Administration.
“We think the market got it wrong for storage,” Dumoulin-Smith wrote in a note to clients. The market has yet to “digest and fully interpret the implications of proposed tariff and tax policy, which as currently written do not bode well for storage,” he said. The foreign sourcing language “is more restrictive than initially thought, with some industry stakeholders calling the proposal a near repeal on IRA.”
The storage supply chain is intensely entangled with China. Many companies, including Tesla,have been forced to disclose to investors just how reliant they are on China for their storage businesses.
China alone accounted for 70% of battery imports in 2024, according to industry analysts at BloombergNEF, over $14 billion worth. About a quarter of the metals used in battery manufacturing — especially graphite — came from China, BNEF figures show. For specific battery chemistry like lithium iron phosphate, which is popular for stationary storage products, the supply chain is essentially 100% Chinese.
Wall Street revenue and profit estimates “do not adequately capture the extent of risks” facing the U.S. storage industry, Dumoulin-Smith wrote. The storage company Fluence’s stock fell around 1.5% today, and is down over 5.5% since close of trading on Monday, as the market began to digest the House language.
It is possible that the foreign sourcing rules will be loosened and phase-outs for tax credits and transferability lengthened, Venkatakrishnan told me, but not in a way that would endanger the overall structure of the bill. Cuts to the Inflation Reduction Act are a key source of revenue for the Republican bill-writers to ensure as many of the tax cuts they want can fit within the budgetary scope they’ve given themselves.
“Any adjustments will be made with an eye toward ensuring budgetary offsets are sufficient to enable success of the broader enterprise,” Venkatakrishnan said. In other words, as much as some lawmakers may want to see these tax credits preserved, ultimately, they’ve got to pass a bill to ensure Trump’s tax cuts stick around.