May 30, 2025
When Congress passed the Inflation Reduction Act (IRA) in 2022, it was heralded as the most ambitious climate and industrial policy in decades. While its headline focused on clean energy and emissions reduction, the law is also proving to be a massive economic catalyst for historically overlooked regions, especially in Appalachia. From battery manufacturing in Pennsylvania to steel upgrades in Ohio and hydroelectric projects in Kentucky, federal investments are flowing into working-class communities that had long been dismissed as left behind. This is not just climate policy, it’s economic reinvestment, job creation, and community revitalization. Need more insight? Read ReImagine Appalachia and The Keystone Research Center’s new paper “If You Fund It, They Will Come” about how public-private funding is driving Appalachia’s industrial renaissance.
Let’s follow the money and see exactly where Inflation Reduction Act funding is landing in Appalachia and what it means for the people who live there.
Let’s look at how the Inflation Reduction Act has helped the four state region
OHIO
Cleveland-Cliffs (Middletown, OH)
District: OH-08 (Rep. Warren Davidson, R)
With a $575 Million grant from the Department of Energy, Cleveland-Cliffs is replacing its blast furnace with electric melting furnaces and a hydrogen-ready Direct Reduced Iron (DRI) plant. The project will secure 2,500 manufactruing jobs, most of them union, and create 170 new permanent positions, plus 1,200 union construction jobs.
JSW Steel USA (Mingo Junction, OH)
District: OH-06 (Rep. Michael Rulli, R)
A $43.5 million IRA tax credit will help JSW Steel produce U.S.-made steel for offshore wind energy, reducing reliance on imports and cutting emissions. This investment supports JSW’s 800-person workforce and strengthens America’s renewable energy supply chain.
WEST VIRGINIA
BHE Renewables (Ravenswood, WV)
District: WV-01 (Rep. Carol Miller, R)
A $500 million clean energy park powered by solar and battery storage is under construction. The project includes a titanium melt facility and will create over 300 new jobs, with major support from IRA tax credits.
Form Energy (Weirton, WV)
District: WV-02 (Rep. Riley Moore, R)
With combined state and federal funding (including Inflation Reduction Act support) Form Energy is transforming a former steel site into a next-generation battery manufacturing facility. The facility started trial production and is currently employing over 300 people.
Constellium (Ravenswood, WV)
District: WV-01 (Rep. Carol Miller, R)
Constellium will receive up to $75 million through the Department of Energy’s Industrial Demonstrations Program to develop a zero-carbon aluminum casting center, supporting hundreds of union jobs (USW Local 5668) and cutting emissions at one of the largest aluminum rolling plants in the world.
PENNSYLVANIA
Voith Hydro (York, PA)
District: PA-10 (Rep. Scott Perry, R)
With $5.8 million in IRA tax credits, Voith Hydro is upgrading its hydropower component manufacturing facility. The project protects around 100 International Association of Machinists union jobs and adds several more in skilled trades, boosting clean energy production and manufacturing.
Eos Energy Enterprises (Turtle Creek, PA)
District: PA-12 (Rep. Summer Lee, D)
A $303.5 million DOE loan guarantee is helping EOS expand its battery manufacturing plant. The expansion will support up to 1,000 permanent and construction jobs, many through union apprenticeships, and enable enough battery storage to power 130,000 homes annually.
Cleveland-Cliffs Bulter Works (Lyndora, PA) – Cuts Threatened, TBD
District: [PA-16 – Rep. Mike Kelly, R]
Through a $75 million IRA-supported reheat furnace upgrade, this facility will improve energy efficiency and secure the only U.S. production of high-silicon grain-oriented electrical steel, key for transformers and grid reliability. However, this and other projects. are in danger of being cut completely.
KENTUCKY
Lock 10 Hydro Partners LLC (Madison County, KY)
District: [KY-06 – Rep. Andy Barr, R]
Receiving $18.9 million from USDA’s IRA-funded PACE program, this run-of-river hydroelectric project will generate 3 megawatts of renewable energy, enough to power 1,600 homes.
Lock 13 Hydro Partners LLC (Lee County, KY)
District: [KY-05 – Rep. Hal Rogers, R]
A $17.7 million investment will build a similar hydro facility, also serving 1,600 homes annually and located in a Justice40 disadvantaged community.
Bluestem Energy (Allen County, KY)
District: [KY-01 – Rep. James Comer, R]
A $6.6 million IRA loan supports a 5-megawatt solar project that will power 900 homes per year, lowering costs and improving grid resilience.
Century Aluminum (Location TBD, likely Northeast KY)
District: Potentially KY-04 or KY-05
Slated to receive up to $500 million through the DOE’s Industrial Demonstrations Program, Century’s planned “green aluminum” smelter could bring 5,500 construction jobs and 1,000 high-quality operations jobs. The company has a neutrality agreement with the United Steelworkers union.
SOAR (12 Appalachian Counties in KY)
Districts: Mixed—Includes parts of KY-05 (Rep. Hal Rogers, R)
The “Eastern Kentucky Runway Recompete Plan” received over $40 million to support job placement and economic revitalization across coal-impacted counties. The project aims to train and employ over 33,000 people, targeting jobs in tech, healthcare, and clean energy.
Restoring Appalachia, One Project at a Time
The Inflation Reduction Act is not just about energy—it’s a blueprint for industrial revitalization. These investments are transforming once-neglected communities into clean energy hubs, manufacturing centers, and training grounds for the next generation of American workers. And though many of the districts receiving this funding are represented by lawmakers who voted against the Inflation Reduction Act, the benefits are undeniable and bipartisan in effect.
As these projects unfold across Appalachia, they demonstrate a simple truth: smart public investment can repair decades of disinvestment. All you have to do is follow the money.