The recent tariff announcements have shaken global markets and dominated headlines. While their long-term impact remains uncertain, one thing is clear: the current administration is committed to promoting U.S.-made products.
With Earth Day on April 22nd, it’s a timely reminder that market trends may rise and fall—but the climate crisis doesn’t wait. Climate tech startups continue to offer an attractive proposition, combining strong financial potential with measurable environmental impact.
And here’s where things get exciting: a growing number of highly rated startups (4.0+/5 on KingsCrowd) are tackling climate change while building manufacturing facilities on U.S. soil and creating skilled jobs. These companies have long understood a key insight: the U.S. has the workforce and the consumer base to support climate-smart solutions that make business sense. The 2022 Inflation Reduction Act (IRA) strengthens this trend by offering significant grants and tax incentives to green manufacturers. Since its passage, over 300,000 clean energy jobs may have been created, with projections nearing 900,000 in the coming years.
The chart below highlights a selection of promising climate tech startups with existing or planned U.S. manufacturing operations.
Already Building—and Earning
Hempitecture produces HempWool, a hemp-based insulation material that not only reduces environmental harm compared to traditional mineral wool—it also stores carbon. The company is on track to nearly double its revenue to $2 million in 2024 and has secured an $8.4 million Department of Energy grant to open a second facility on the East Coast, likely in Tennessee, revitalizing communities impacted by coal plant closures.
Hylio manufactures agricultural spray drones that reduce the use of pesticides and fertilizers compared to traditional tractors. The company generated $11.5 million in 2024 and is now building a second factory in Texas to meet surging demand. Interestingly, Hylio doesn’t lean into sustainability branding—it leads with Made in the USA. That message resonates with farmers, allowing the company to command higher prices than Chinese competitors while delivering on quality and durability.
Soon to Manufacture in the U.S.
- RISE Robotics is collaborating with Anthony Liftgates in Illinois to integrate its Beltraulics system—a cleaner, more energy-efficient alternative to hydraulics—into liftgates. The tech supports electrification in heavy machinery and reduces maintenance costs.
- SorbiForce plans to build a factory in Arizona to manufacture compostable batteries—a potential revolution in the battery lifecycle. With no fire risk, non-toxic materials, and zero pollution from extraction to disposal, it could become a viable competitor to lithium.
- Qnetic is preparing to manufacture large-scale flywheels in Northern California. Their technology stores energy mechanically using abundant materials, offering a clean, long-lasting alternative for grid-scale energy storage.
A Strategic AdvantageBy manufacturing locally, these startups are gaining a strategic edge. They reduce tariff exposure, appeal to climate- and quality-conscious customers, and benefit from growing policy support under the IRA. While it’s too early to say if the latest tariffs will cause a manufacturing shift en masse, early movers already benefit from having bet on the U.S. before it became a trend.
