Tennessee Ranks 2nd in US for Clean Energy Manufacturing

Tennessee is becoming a clean energy manufacturing powerhouse, with $27.4 billion invested in facilities making solar panels, electric vehicle batteries, and nuclear fuel components. The state now ranks second in the entire country for clean manufacturing investment and sixth for announced jobs in the sector, according to a new report from Atlas Public Policy.

More than 20,000 jobs have been announced across these facilities. Some are already operating while others are still under construction or in planning stages.

The investments span technologies crucial to America's energy future. Nuclear energy production accounts for one-third of the state's clean manufacturing dollars, while EV battery plants and solar panel factories make up significant portions of the remaining investment.

Tennessee already generates more than half its electricity from carbon-free sources, primarily nuclear plants and hydroelectric dams operated by the Tennessee Valley Authority. This clean power base makes the state attractive for manufacturers looking to reduce their carbon footprints.

The clean energy sector now supports 108,580 jobs statewide. These roles span everything from manufacturing and operating power plants to managing electrical grids and improving energy efficiency.

Chattanooga's biggest planned project comes from locally based Novonix, which aims to become a major supplier of synthetic graphite for battery production. The company plans to invest $1.5 billion and create 500 jobs as it scales up production of this critical battery material, currently almost entirely controlled by China.

The Ripple Effect

Tennessee's success demonstrates how clean energy manufacturing can transform regional economies without requiring states to choose between jobs and environmental progress. The state is proving that making the components for solar panels, batteries, and nuclear fuel creates substantial economic opportunity.

This manufacturing boom positions Tennessee workers at the center of America's energy transition. As demand grows for electric vehicles, renewable power, and next-generation nuclear technology, the state's factories will supply critical components to the entire nation.

Other states are watching Tennessee's model closely. The combination of existing clean electricity, strategic investments, and skilled workers shows a path forward for regions seeking economic growth through emerging industries.

Not every project moves forward smoothly. The report notes that over $7 billion in planned EV and battery investments have been cancelled as companies navigate uncertain demand and changing tax policies. But the projects that remain represent genuine, lasting economic development.

Tennessee's clean manufacturing success creates a foundation for decades of economic growth while supporting America's transition to cleaner energy sources.