Trump’s DOE proposes cutting billions in grants for GM, Ford, and lots of startups

The Department of Energy (DOE) is considering substantial cuts to federal funding that could have significant repercussions for major automakers and innovative startups alike. Under the Trump administration's proposal, over $500 million in grants awarded to various companies, including Ford, General Motors, and Stellantis, may be canceled, based on an internal document reviewed by TechCrunch. These proposed cuts primarily target grants that were allocated under the Bipartisan Infrastructure Law. This alarming initiative follows an earlier announcement of over $7.5 billion in contract reductions by the administration, intensifying concerns among industry stakeholders. Not only automakers but also numerous startups are poised to feel the impact of these financial setbacks, as many grants are crucial for their ongoing projects. General Motors, for instance, stands to lose at least $500 million earmarked for the Domestic Manufacturing Conversion Grant program, which was intended to facilitate the retooling of the Lansing Grand River Assembly Plant in Michigan for the production of electrified vehicles. Among the startups facing potential funding losses is Brimstone, which has been granted $189 million to establish a plant that produces low-carbon Portland cement and alumina. Another notable casualty could be Anovion, a Chicago-based company aiming to produce synthetic graphite domestically for lithium-ion batteries, a market currently dominated by Chinese firms. Other companies on the chopping block include Li Industries, which received $55.2 million to recycle lithium iron phosphate (LFP) batteries, and several others focused on sustainable building materials. For example, Sublime Systems, based in Somerville, Massachusetts, risks losing $86.9 million for its ultra-low-carbon cement plant initiative. The potential funding cuts extend beyond just automakers and startups; they threaten to undermine the administration's stated goals of achieving energy and artificial intelligence superiority. TS Conductor, which could be stripped of $28.2 million in grants, specializes in advanced conductors that enhance electric line capacity, a technology vital for improving grid efficiency. As the DOE's proposals unfold, the ramifications for the automotive and startup sectors are becoming increasingly clear, with many stakeholders anxiously awaiting further developments.