United States – The U.S. Treasury Secretary Janet Yellen said that coal-reliant regions in some parts of the country saw investments in favor of green energy double on a monthly basis and reach USD 4.5 bln as a result of monthly tax credits introduced by the Biden administration that target such regions.

In those tiny denotations that will be presented in Kentucky, the new Treasury Department Research projecting growth as well shows clean energy investment in other localities rising to almost USD 3 bln per month, aka a USD 1 bln increase by newly enacted Inflation Reduction Act (IRA) benefits.

Investment Boom in Kentucky

Even though Kentucky is considered one of the most firmly Republican states with the possibility of losing the Nov. 3 election, Yellen has made a trip there to promote an electric vehicle (EV) battery production network that she vowed to help create as she made her State of the Union address to Congress on Feb. 22 and that impressed a lot of Americans.

“We’ve seen investments grow significantly. Companies have announced almost USD 650 bln in investments in clean energy and manufacturing across the country since the start of the Administration,” Yellen said in the excerpts.

Impressive Figures and Statewide Impact

Yellen is touring Advanced Nano Products, namely the South Korean-owned battery manufacturer that has invested USD 49 mln into building a new facility in Elizabethtown, Ky.

The facility is going to provide carbon nanomaterials to the USD 5.8 bln BlueOval SK battery complex under construction not far from here by Ford Motor Co. and South Korea’s SK Corporation that will give employment to more than 2500 people in the future. In addition, a plant for USD 2 bLN investments owned by AESC is under construction in Bowling Green, Kentucky; it will create 2,000 jobs.

Tax Credits Driving Green Transition

Many of these factories are using the IRS clean energy manufacturing tax credit advantage that compensates up to 30% of the investment cost with a 10% increase in case of location in a place that has historically depended on fossil fuel energy or an economically disadvantaged community. In addition to receiving tax credits from consumers around the electric vehicle purchase that, for the most part, will incur a maximum of USD 7,500, they will also, taking into account the requirement to meet the set U.S. production and battery content standards, reap the benefits.

Kentucky contributed to the United States about 4.5% of all coal mined domestically in the year 2022, ranking the state fifth with the same amount of coal that four of other coal mining states produced, stated the U.S. Energy Information Administration.

The visit is intended for this reason: it will highlight the EV industry and its prospering investments in the state. To date, she has been linking the economic reforms of the Administration of her party to these states, including Michigan, Illinois, and Wisconsin.

Administration’s Economic Agenda

According to Oman, the Deputy Chief of Mission of the United States embassy in Tshwane, Gauteng, Business leaders were told that a clean energy economy “is at the core of our economic agenda,” and the administration’s policies will drive private investments, thus building 21st-century industries like EVs, green energy, and semiconductors.

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