TLDRs;
- DOE proposes cutting $500M+ in federal grants to automakers and startups under Bipartisan Infrastructure Law.
- General Motors, Ford, and Stellantis face potential losses for EV and hybrid production programs.
- Startups like Brimstone and Anovion risk losing over $100M each for green material projects.
- Proposed cancellations threaten U.S. efforts in clean energy, battery production, and domestic manufacturing.
The U.S. Department of Energy is considering a major reduction in federal funding that could impact both established automakers and emerging startups.
According to internal documents reviewed by industry sources, the proposed cuts could cancel over $500 million in grants awarded under the Bipartisan Infrastructure Law, affecting more than a dozen companies.
These new cuts come shortly after the Trump administration announced plans to withdraw more than $7.5 billion in previously approved contracts, signaling a broader move to scale back federal support for green technologies and domestic manufacturing initiatives.
Automakers at Risk
Major automotive players, including General Motors, Ford, Stellantis, Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, could see hundreds of millions of dollars in federal grants withdrawn.
GM is among the most affected, with at least $500 million from a Domestic Manufacturing Conversion Grant program at risk. These funds were earmarked for retooling its Lansing Grand River Assembly Plant in Michigan to produce electric and hybrid vehicles, a key component of the automaker’s long-term electrification strategy.
Ford and Stellantis are also vulnerable, potentially losing funding tied to similar initiatives aimed at expanding EV production.
Startups Face Major Funding Losses
Innovative startups focused on low-carbon materials and battery technology are also at the center of the DOE’s proposed cuts.
Brimstone, a materials startup developing low-carbon cement and alumina production, could lose a $189 million award. Anovion, a Chicago-based startup working to produce domestic synthetic graphite for lithium-ion batteries, faces a similar risk with a grant exceeding $100 million.
Other startups potentially affected include Li Industries, which recycles lithium iron phosphate batteries, Sublime Systems, Furno, CleanFiber, Hempitecture, Skyven Technologies, and Luxwall. These companies collectively receive tens of millions in federal funding to support the development of clean energy infrastructure, building materials, and energy-efficient technologies.
Implications for Energy and Manufacturing
Several of the proposed cancellations could undermine the U.S. government’s broader energy and infrastructure goals.
TS Conductor, a company producing advanced electric line conductors capable of significantly increasing transmission capacity, could lose $28.2 million in funding. Such technology is designed to reduce grid bottlenecks and support faster power delivery to data centers and industrial users.
Industry experts warn that the withdrawal of federal grants may slow the adoption of electric vehicles, hinder the domestic production of critical battery materials, and impede the growth of sustainable building materials, potentially affecting the country’s competitiveness in both energy and AI-related industries.
Conclusion
While the DOE has not officially confirmed the final cuts, the leaked internal document highlights the scale of potential reductions. Companies and startups reliant on these grants now face uncertainty, forcing them to reevaluate timelines, investment strategies, and expansion plans.
If enacted, these cuts could reshape the U.S. clean energy landscape, impacting automakers, startups, and the broader goal of reducing carbon emissions through domestic innovation.
