Summary:
Trump's DOE proposes cutting over $500 million in grants to startups and automakers under the Bipartisan Infrastructure Law
General Motors faces losing $500 million for retooling a plant to produce electrified vehicles
Startups like Brimstone and Anovion risk $100+ million grants for low-carbon cement and domestic battery graphite production
Cuts impact cement innovators and building material companies, threatening clean energy and manufacturing advancements
Some cancellations, like TS Conductor's grant, may hinder grid capacity and AI energy goals
Federal Funding Cuts Threaten Innovation
The Department of Energy is proposing to cut billions more in federal funding, putting promising startups and major automakers like Ford, General Motors, and Stellantis at risk under the Trump administration's latest decision.
Billions at Stake for Startups and Automakers
These proposed cuts would cancel over $500 million in contracts awarded to more than a dozen startups, based on an internal document analyzed by TechCrunch. All these grants were awarded under the Bipartisan Infrastructure Law. This follows over $7.5 billion in contract cancellations announced last week, highlighting a significant shift in energy policy.
Startups aren't the only ones impacted. Other companies facing potential losses include Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, with grants worth hundreds of millions of dollars on the line.
Major Automaker Investments in Jeopardy
General Motors could lose at least $500 million from a federal Domestic Manufacturing Conversion Grant program. These funds were intended to retool the Lansing Grand River Assembly Plant in Michigan for producing electrified vehicles, including hybrids, a plan announced in July 2024.
High-Impact Startup Grants on the Chopping Block
Several startups are facing substantial cuts that could disrupt their operations:
- Brimstone: $189 million award to build a plant for producing Portland cement, alumina, and other materials with reduced carbon dioxide.
- Anovion: A major grant to establish a factory for domestic synthetic graphite production for lithium-ion batteries, challenging China's dominance in the graphite market.
- Li Industries: $55.2 million to recycle LFP batteries, aiming to shift part of the supply chain away from China.
Cement and Building Material Innovators Hit Hard
Other cement startups are also affected:
- Sublime Systems: $86.9 million for an ultra-low-carbon cement plant.
- Furno: $20 million grant to build a modular cement kiln demonstration plant in Chicago.
Building materials companies facing cuts include:
- CleanFiber and Hempitecture: $10 million and $8.4 million respectively for insulation products.
- Skyven Technologies: $15 million for industrial heat pumps.
- Luxwall: $31 million for super-insulated windows.
Contradictions in Energy and AI Goals
At least one proposed cancellation appears to conflict with the administration's stated objectives. TS Conductor stands to lose $28.2 million for developing advanced conductors that double or triple electric line capacity, which could alleviate grid bottlenecks and support data center power needs, aligning with energy and AI dominance aims.
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