Technology

Trump Administration Proposes Billions in Cuts to DOE Grants Impacting Major Automakers and Startups

Lilu Anderson
By Lilu Anderson
Trump Administration Proposes Billions in Cuts to DOE Grants Impacting Major Automakers and Startups | FinOracle
Photo: Finoracle.net

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->

Contents
FinOracleAI — Market ViewFinOracleAI — Market ViewAbout the AuthorFinOracleAI — Market ViewAbout the AuthorFinOracleAI — Market ViewPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewStartups Facing Substantial Funding WithdrawalsPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewStartups Facing Substantial Funding WithdrawalsPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewImpact on Leading AutomakersStartups Facing Substantial Funding WithdrawalsPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewImpact on Leading AutomakersStartups Facing Substantial Funding WithdrawalsPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market ViewDOE Proposes Significant Grant Cuts Affecting Automakers and StartupsImpact on Leading AutomakersStartups Facing Substantial Funding WithdrawalsPotential Contradictions With Energy and Technology ObjectivesAbout the AuthorFinOracleAI — Market View
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> General Motors faces a potential loss of at least $500 million from the federal Domestic Manufacturing Conversion Grant program. These funds were designated to modernize GM’s Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles, including hybrids, a strategic pivot announced by GM in July 2024. !-- wp:paragraph --> Other automakers at risk include Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, all slated to lose grants worth hundreds of millions collectively. !-- wp:paragraph -->

Startups Facing Substantial Funding Withdrawals

The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> General Motors faces a potential loss of at least $500 million from the federal Domestic Manufacturing Conversion Grant program. These funds were designated to modernize GM’s Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles, including hybrids, a strategic pivot announced by GM in July 2024. !-- wp:paragraph --> Other automakers at risk include Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, all slated to lose grants worth hundreds of millions collectively. !-- wp:paragraph -->

Startups Facing Substantial Funding Withdrawals

The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> The U.S. Department of Energy (DOE), operating under the Trump administration, has proposed substantial reductions in federal funding, with over $500 million in grants earmarked for cancellation. This move threatens a range of promising startups alongside major automakers including General Motors, Ford, and Stellantis. !-- wp:paragraph --> These proposed cuts, revealed through an internal DOE document obtained by TechCrunch, would rescind contracts awarded under the Bipartisan Infrastructure Law. These latest cancellations add to more than $7.5 billion in contract reductions announced by the administration last week. !-- wp:paragraph -->

Impact on Leading Automakers

General Motors faces a potential loss of at least $500 million from the federal Domestic Manufacturing Conversion Grant program. These funds were designated to modernize GM’s Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles, including hybrids, a strategic pivot announced by GM in July 2024. !-- wp:paragraph --> Other automakers at risk include Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, all slated to lose grants worth hundreds of millions collectively. !-- wp:paragraph -->

Startups Facing Substantial Funding Withdrawals

The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph --> The U.S. Department of Energy (DOE), operating under the Trump administration, has proposed substantial reductions in federal funding, with over $500 million in grants earmarked for cancellation. This move threatens a range of promising startups alongside major automakers including General Motors, Ford, and Stellantis. !-- wp:paragraph --> These proposed cuts, revealed through an internal DOE document obtained by TechCrunch, would rescind contracts awarded under the Bipartisan Infrastructure Law. These latest cancellations add to more than $7.5 billion in contract reductions announced by the administration last week. !-- wp:paragraph -->

Impact on Leading Automakers

General Motors faces a potential loss of at least $500 million from the federal Domestic Manufacturing Conversion Grant program. These funds were designated to modernize GM’s Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles, including hybrids, a strategic pivot announced by GM in July 2024. !-- wp:paragraph --> Other automakers at risk include Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, all slated to lose grants worth hundreds of millions collectively. !-- wp:paragraph -->

Startups Facing Substantial Funding Withdrawals

The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph -->

DOE Proposes Significant Grant Cuts Affecting Automakers and Startups

The U.S. Department of Energy (DOE), operating under the Trump administration, has proposed substantial reductions in federal funding, with over $500 million in grants earmarked for cancellation. This move threatens a range of promising startups alongside major automakers including General Motors, Ford, and Stellantis. !-- wp:paragraph --> These proposed cuts, revealed through an internal DOE document obtained by TechCrunch, would rescind contracts awarded under the Bipartisan Infrastructure Law. These latest cancellations add to more than $7.5 billion in contract reductions announced by the administration last week. !-- wp:paragraph -->

Impact on Leading Automakers

General Motors faces a potential loss of at least $500 million from the federal Domestic Manufacturing Conversion Grant program. These funds were designated to modernize GM’s Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles, including hybrids, a strategic pivot announced by GM in July 2024. !-- wp:paragraph --> Other automakers at risk include Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, all slated to lose grants worth hundreds of millions collectively. !-- wp:paragraph -->

Startups Facing Substantial Funding Withdrawals

The proposed cuts also jeopardize critical funding for innovative startups developing technologies in clean energy and advanced materials. Two notable grants exceed $100 million each: !-- wp:paragraph -->
  • Brimstone, a materials startup, was awarded $189 million to construct a plant producing Portland cement and alumina with reduced carbon emissions.
  • Anovion, based in Chicago, received funding to establish a domestic synthetic graphite factory, targeting a market currently dominated by Chinese suppliers.
Other startups affected include Li Industries, which secured $55.2 million to recycle lithium iron phosphate (LFP) batteries, aiming to reduce U.S. reliance on China for battery materials. !-- wp:paragraph --> Several cement technology companies, such as Sublime Systems ($86.9 million) and Furno ($20 million), are also at risk, alongside building materials firms like CleanFiber, Hempitecture, Skyven Technologies, and Luxwall, which develop insulation and energy-efficient building components. !-- wp:paragraph -->

Potential Contradictions With Energy and Technology Objectives

One notable grant proposed for cancellation is TS Conductor’s $28.2 million award. The company manufactures advanced conductors designed to significantly increase capacity on existing electric transmission lines, a technology that could alleviate grid bottlenecks and enhance power reliability for data centers and other critical infrastructure. !-- wp:paragraph --> These cuts raise questions about alignment with broader U.S. ambitions to dominate in energy innovation and artificial intelligence infrastructure. !-- wp:paragraph -->
About the Author
Tim De Chant is a senior climate reporter at TechCrunch with extensive experience covering environmental science and technology. He holds a PhD in environmental science, policy, and management from UC Berkeley and has taught science writing at MIT. !-- wp:paragraph --> Contact: tim.dechant@techcrunch.com !-- wp:paragraph -->

FinOracleAI — Market View

The proposed DOE grant cuts signal a significant recalibration of federal support for the clean energy and advanced manufacturing sectors. While intended to reduce government expenditures, these reductions risk undermining critical U.S. efforts to compete globally in electric vehicle production, battery supply chains, and low-carbon materials. !-- wp:paragraph -->
  • Opportunities: Potential reallocation of funds towards higher-priority projects or fiscal consolidation.
  • Risks: Disruption of domestic supply chains for EV components and battery materials, delaying decarbonization goals.
  • Negative impacts on startups’ growth trajectories, potentially reducing U.S. technological leadership.
  • Possible contradictions between funding cuts and strategic objectives in energy infrastructure resilience and AI integration.
Impact: The market may respond with increased uncertainty in sectors reliant on federal grants, particularly in clean energy and advanced manufacturing, potentially slowing innovation and investment momentum. !-- wp:paragraph -->
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Lilu Anderson
ByLilu Anderson
Lilu Anderson is a technology writer and analyst with over 12 years of experience in the tech industry. A graduate of Stanford University with a degree in Computer Science, Lilu specializes in emerging technologies, software development, and cybersecurity. Her work has been published in renowned tech publications such as Wired, TechCrunch, and Ars Technica. Lilu’s articles are known for their detailed research, clear articulation, and insightful analysis, making them valuable to readers seeking reliable and up-to-date information on technology trends. She actively stays abreast of the latest advancements and regularly participates in industry conferences and tech meetups. With a strong reputation for expertise, authoritativeness, and trustworthiness, Lilu Anderson continues to deliver high-quality content that helps readers understand and navigate the fast-paced world of technology.

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