Half of the $154 Trillion US IRA Investment Concentrated in Battleground States

Since the enactment of the U.S. Inflation Reduction Act (IRA) in 2022, nearly half of the clean energy investment projects announced have been concentrated in battleground states that are key to the presidential election.

According to Bloomberg's tally on the 2nd (local time), out of the $114 billion (approximately 154 trillion KRW) in investments announced by companies so far, about $53.6 billion (approximately 72 trillion KRW) is planned to be invested in six battleground states: Arizona, Georgia, Michigan, Nevada, North Carolina, and Pennsylvania.

President Joe Biden of the United States
[Photo by Yonhap News]

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The investments include factories for electric vehicles, batteries, and components for wind and solar power plants. Manufacturers have chosen Michigan for its low labor and electricity costs, and Georgia for its local government regulations and financial support.

The IRA, a signature legislative achievement of President Joe Biden, provides subsidies and tax credits to companies investing in the clean energy industry to address climate change and strengthen the U.S. clean energy supply chain. When it passed Congress in 2022, all Republican lawmakers opposed it, and former President Donald Trump stated that he would repeal the IRA if re-elected.

Recently, President Biden has been promoting the massive investments attracted through the IRA on a daily basis, emphasizing that a significant portion of the investments are taking place in Republican strongholds.

Bloomberg stated, "The IRA is central to the upcoming election," adding, "While the IRA has initiated economic development and job creation in key states for the presidential election, it remains uncertain whether the new manufacturing in these states will translate into votes."

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