DOE Proposes Billions in Cuts to GM, Ford, and Startup Grants
▼ Summary
– The Trump administration is proposing to cut over $500 million in federal grants awarded to more than a dozen startups under the Bipartisan Infrastructure Law.
– Major automakers including Ford, General Motors, and Stellantis could lose hundreds of millions in grant money, with GM potentially losing $500 million for retooling a Michigan plant.
– Two startups face particularly large cuts: Brimstone could lose $189 million for low-carbon cement production and Anovion could lose over $100 million for domestic battery graphite manufacturing.
– Multiple clean technology companies across sectors would be affected, including cement startups, battery recyclers, building material manufacturers, and grid technology developers.
– These proposed cuts come in addition to $7.5 billion in contract cancellations announced the previous week and could significantly impact the operations of affected companies.
A significant shift in federal energy funding is underway, with the Department of Energy proposing to slash billions in grants previously awarded to major automakers and innovative startups. This move, initiated by the Trump administration, targets financial support originally allocated under the Bipartisan Infrastructure Law. An internal review reveals plans to cancel over $500 million in contracts for more than a dozen emerging companies, adding to previously announced cuts exceeding $7.5 billion.
The impact extends far beyond the startup ecosystem. Established automotive giants including Ford, General Motors, and Stellantis are also slated to lose hundreds of millions in federal grants. According to a confidential document analyzed by TechCrunch, other affected corporations are Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America. Sources have verified that these are proposed reductions, though they have not been formally announced.
General Motors faces a particularly substantial setback, potentially forfeiting at least $500 million from the Domestic Manufacturing Conversion Grant program. These funds were designated for retooling the Lansing Grand River Assembly Plant in Michigan to facilitate the production of electrified and hybrid vehicles, a plan the automaker publicized in July 2024.
For many startups, the proposed cuts threaten their core operational viability. While some appeared on a leaked list last week, numerous others are newly identified. Two awards facing elimination are especially notable, each surpassing $100 million. Materials startup Brimstone stands to lose a $189 million grant intended for constructing a facility to produce Portland cement and alumina with a significantly reduced carbon footprint.
Similarly, Chicago-based Anovion could see a nine-figure award revoked. This funding was crucial for building a factory to establish a domestic supply of synthetic graphite for lithium-ion batteries, a market currently dominated by Chinese manufacturers.
Battery materials firm Li Industries received $55.2 million under the infrastructure law to advance its recycling processes for LFP batteries, an initiative aimed at reclaiming part of this supply chain from China.
The cement industry’s green innovators are also on the list. Sublime Systems, based in Somerville, Massachusetts, was awarded $86.9 million to develop an ultra-low-carbon cement plant. Mountain View company Furno would lose its $20 million grant, which was allocated for demonstrating a novel, modular cement kiln in Chicago.
Several companies focused on sustainable building materials are impacted as well. CleanFiber and Hempitecture, which manufacture insulation for residential and commercial properties, risk losing $10 million and $8.4 million, respectively. Skyven Technologies, a producer of industrial heat pumps, and Luxwall, which manufactures super-insulated windows, face the loss of $15 million and $31 million in funding.
At least one proposed cancellation appears to conflict with stated administrative objectives regarding energy and AI leadership. TS Conductor, which may lose $28.2 million, develops advanced electrical conductors capable of doubling or tripling the capacity of existing transmission lines. This technology is designed to alleviate grid bottlenecks and could accelerate power availability for critical infrastructure like data centers.
(Source: TechCrunch)
