The Trump administration may potentially roll back parts of Biden's Inflation Reduction Act.
Analysts from Benchmark Minerals predict that fossil fuels could take center stage.
Any effects on the electric vehicle and battery sectors might not be felt for several years.
With Donald Trump returning to the White House, his administration may target parts of Biden’s Inflation Reduction Act (IRA), especially policies supporting clean energy and electric vehicles (EVs).
Trump is likely to prioritize fossil fuels and could relax environmental regulations. This would impact the EV and battery sectors, which have seen significant investment under Biden’s IRA, although such changes may take years.
A potential challenge for Trump would come from the fact that many red states have benefited from IRA-backed clean tech investments, which could make it politically difficult to fully repeal. Analysts suggest Trump might modify IRA provisions, like the foreign entity of concern (FEOC) rules, rather than dismantle them entirely.
While EV demand may not immediately decline, automakers could be less driven to electrify under weakened fuel standards. Trump could also impose more tariffs on Chinese imports, including EVs and critical minerals, which might add uncertainty to domestic and foreign policies around clean tech.