Since President Donald Trump took away $7,500 tax credits for EVs, demand for the vehicles has slumped, contributing to a widespread battery surplus. The shift has led to a divestment in battery factory plans, a hit to Trump’s goal of bolstering U.S. manufacturing. Meanwhile, China continues to lead the world in global battery production.

President Donald Trump’s crackdown on electric vehicle tax credits has contributed to a growing battery surplus that may hinder U.S. manufacturing, experts warn.

The lack of incentives is driving slower EV sales, leaving battery producers with an overcapacity. This could lead to slower production and expansion, as well as higher energy costs, weakening U.S. manufacturing campaigns against China.

The U.S. is predicted to deploy about 378 gigawatt-hours

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