Investments and jobs in the American clean energy sector have boomed since August’s Inflation Reduction Act, according to new research.
Around 100,000 clean energy jobs have been created in the past sixth months, according to activist group Climate Power and investment in the sector has reached US$89.5bn.
Inflation Reduction includes incentives such as tax credits and US$369bn worth of public funding to cut emissions.
So far, 22 EV companies have announced plans to expand or create new US-based plants since the legislation was passed, including the likes of Hyundai Motor Group, BMW, Toyota and Tesla, the report said.
Ford Motor Company (NYSE:F) suggested it would redshift its focus towards the US too, as it announced 3,200 European job cuts in late January, while British EV start-up Arrival has made similar moves to head across the Atlantic.
It comes as the UK’s EV sector is struggling to make leeway in the growing market.
Britishvolt’s proposed £3.8bn Gigafactory in Northumberland saw doubt cast over the plans as it fell into administration at the start of this year, although a buyout by Australian Recharge Industries has revived these.
Arrival, which received regulatory approval for its electric van in the EU last year, has also hinted towards issues, cutting 800 jobs in January on top of a similar number of layoffs made last year.
Concerns that the UK is lacking EV infrastructure have also grown as the Department for Transport data revealed the UK had just 37,680 public charge points at the end of last year.
Britain has earmarked £1.45bn worth of public funding for the UK’s charging infrastructure, but the government suggested “the private sector has a critical role to play” if a targeted 300,000 units were to be in place by 2030.