Trump DOE confirms it’s canceling over $700M in manufacturing grants

In a significant move, the Department of Energy (DOE) has announced the cancellation of $720 million in manufacturing grants aimed at various companies engaged in battery material production, lithium-ion battery recycling, and the creation of energy-efficient windows. This decision follows a comprehensive review of contracts initiated during the Biden administration, with Energy Secretary Chris Wright emphasizing that many projects fell short of their objectives and did not adequately support the country’s energy requirements. Spokesperson Ben Dietderich communicated to E&E News that the projects in question had 'missed milestones.' The funding for these grants was initially authorized by Congress as part of the Bipartisan Infrastructure Law enacted in 2021, with most awards allocated in 2023 and 2024. The previous administration had utilized grants issued between Election Day and Inauguration Day as a rationale for canceling specific awards. Three startups impacted by this cancellation were selected for funding prior to the upcoming 2024 presidential election. Ascend Elements received $316 million for their innovative recycling technology that converts manufacturing waste and used batteries into essential materials for domestic lithium-ion battery production. Although the company has already received $206 million, it plans to continue its operations using alternative funding sources to cover any financial gaps. Anovion, another affected startup, was granted $117 million to establish a facility in Alabama for producing synthetic graphite, a critical component for lithium-ion battery anodes. Currently, Chinese suppliers dominate the synthetic graphite market, holding 75% of the supply chain and producing 97% of all synthetic graphite anodes, as reported by Benchmark Mineral Intelligence. So far, Anovion has only received $13.8 million from the DOE. Lastly, LuxWall, which specializes in manufacturing windows that provide insulation equivalent to that of solid walls, had been awarded $31.7 million to develop a factory at a former coal plant site near Detroit. Despite receiving only $1 million to date, the company opened the first phase of its facility in August 2024. These grants were intended to help startups navigate the challenging transition from technological development to commercial production, encouraging private investment and bolstering the manufacturing sector in the country.