The Sierra Club of Tennessee said the Trump administration's decision to scrap $7.6 billion in clean energy grants has affected eight projects in the state.
Court documents confirmed the federal government canceled more than 300 grants in 16 states because they voted for Kamala Harris in the 2024 election.
Pat Cupples, director of the Tennessee chapter of the Sierra Club, said the fallout is hitting major employers. For example, a Wacker plant in Charleston making solar panel parts laid off 90 employees. The Volkswagen plant in Chattanooga stopped production of the ID.4 electric SUV and is furloughing 160 employees.
"We've got another 950 jobs at risk right now with the Novonix plant. They make synthetic graphite for lithium-ion EV batteries. That grant is currently threatened," Cupples pointed out.
Cupples explained Novonix is losing its federal clean energy grant and a state grant for job creation from the state of Tennessee at the same time. The state has asked them to return funds they were given for workforce expansion.
In October of last year, the Department of Energy said the projects funded by the grants failed to meet national energy needs, were not economically viable and would not deliver a worthwhile return on taxpayer investment.
According to the American Presidency Project, nearly 2 million Tennesseans voted for Donald Trump in 2024, underscoring the state’s solid red status. Cupples noted Tennessee’s emerging “battery belt,” part of a series of national electric vehicle investments, is now “collateral damage” from canceled EV tax credits.
"They were supplying the car companies in Michigan, and they were creating this economy for being the leader in renewable, whether it's solar panels or batteries. And so when those grants are canceled for political reasons in other states, that affects everybody," Cupples stressed.
The nonprofit argued the Trump administration canceled the grants to boost the coal industry. Cupples believes the state could invest in renewable energy now but state lawmakers are making it difficult to site solar projects.
Cupples added the Sierra Club recommended clearing the way for more solar and battery projects to help the U.S. keep pace with foreign competitors investing in clean energy.
Canceled Clean Energy Grants Threaten Tennessee Projects, Jobs was first published by Public News Service and is republished with permission.
Danielle M. Smith is a producer at PNS. The award-winning radio journalist/personality has more than a decade of experience in broadcast media.
