Multiple battery projects have been cancelled across multiple countries but including in the United States in 2025.
More lithium battery manufacturing projects have been cancelled in Q1 2025 than the last two years, according to the data from think thank Atlas Public Policy.
These cancellations were before Donald Trump’s changes to tariffs, in the wake of uncertainty of what might happen to the Biden-era tax credits for EV manufacturers.
This includes a thermal barrier facility by Aspen Aerogels worth $1 billion in Georgia, which had conditionally agreed to a loan from the US Department of Energy.
The firm told investors in February 2025 it withdrew from the negotiation process for the loan.
Aspen also moved manufacturing to existing facilities in Mexico and China, as well as a factory in Rhode Island, according to Latitude Media.
In a call the chief financial officer Ricardo C. Rodriquez told investors the change to China is a “no brainer”.
He said it is because the EV market in China has 50% penetration, whereas there is a slow rate of EV adoption, closer to 10-15%, in Europe and the US.
It declined to comment further to both Washington Post and Latitude Media.
But even the Chinese materials market is facing difficulty, with overproduction and a surplus of anodes and cathodes driving down prices, according to Chemical & Engineering news.
This has led to some Chinese firms trying to set up cathode plants overseas, where there is less competition, it said.
Other firms due to receive DOE funding such as KORE Power and Ascend Elements cancelled their projects as well.
Ascend Elements decided it would not go ahead with a CAM plant in Kentucky, US. The company voluntarily returned a $164 million grant, although a separate $316 million grant for pCAM remains live.
It said it will make precursors for cathode materials using recycled batteries at the same facility instead.
Roger Lin, VP of government affairs, Ascend Elements, said: “We are grateful to the U.S. DOE for selecting Ascend Elements to receive this funding, but current market conditions do not support advancement of the CAM project at Apex 1.”
KORE Power said it decided before Trump came into office to retrofit an existing factory.
This was instead of continuing with its $1.2 billion lithium-ion plant in Arizona, which had been given conditional approval in 2023 for an $850 million loan from DOE.
Freyr Battery, which makes solar and battery storage, also cancelled its $2.6 billion project in Georgia as well, according to ENR Texas & Southeast.
Umicore, the Brussels-based battery materials company, has decided to half the amount it plans to spend on battery materials projects between 2025-2028.
It said it will maintain the current projects it is supporting minimally, to finish existing projects and meet customer commitments.
But it has also entered into two separate supply agreements for precursor cathode active material (pCAM), with CNGR and Eco&Dream Co., Ltd.
In Finland, the former joint venture battery maker CNGR Finland Oy withdrew its advanced material team from its planned pCAM plane project in Hamina.
It attributed this decision to the slower adoption of EVs in Europe, as well as what it calls ambiguity in regulations in the sector.
Dani Widjaja, now former CEO, CNGR Finland Oy, said: “Although the project holds significant potentials, the company is shifting focus to align with current market dynamics and prioritize its existing operations while remaining responsive to future opportunities.”
Finnish Materials Group Oy, the partner in the joint venture, has acquired CNGR’s stake and is now the sole owner of the company, he said.
