The Department of Energy has announced the cancellation of $720 million in manufacturing grants aimed at supporting battery material production and recycling efforts.
The Department of Energy (DOE) has confirmed the cancellation of $720 million in manufacturing grants, a decision that impacts companies involved in producing battery materials, recycling lithium-ion batteries, and manufacturing super-insulating windows.
The funding for these grants was authorized by Congress as part of the Bipartisan Infrastructure Law, which was enacted in 2021. Most of the grants were awarded in 2023 and 2024. The Trump administration previously used grants awarded between Election Day and Inauguration Day as a basis for canceling certain awards.
Energy Secretary Chris Wright has been reviewing contracts established during the Biden administration. The DOE has stated that the projects associated with these grants “missed milestones” and “did not adequately advance the nation’s energy needs.”
According to the DOE, the $720 million in grants includes funding awarded to several battery companies, including Ascend Elements, American Battery Technology Co., Anovion, and ICL Specialty Products, as well as the glass manufacturer LuxWall.
Ascend Elements has been developing a recycling technology designed to convert manufacturing waste and end-of-life batteries into materials necessary for domestic lithium-ion battery production. In October 2022, the company was awarded $316 million toward a $1 billion facility in Kentucky. Federal records indicate that $206 million has already been disbursed to Ascend Elements. The company has stated it will continue with its plans using alternative funding sources to cover any financial shortfall.
Another recipient, Anovion, received $117 million to reshore technology for producing synthetic graphite used in lithium-ion battery anodes. Currently, Chinese suppliers dominate the supply chain for synthetic graphite, controlling 75% of the market and producing 97% of all synthetic graphite anodes, according to Benchmark Mineral Intelligence. Anovion’s plant is expected to be constructed in Alabama, with only $13.8 million disbursed to date, as per federal database records.
LuxWall, which manufactures windows designed to insulate buildings, was awarded $31.7 million to establish a factory on the site of a former coal plant near Detroit. This grant was issued in November 2023, but only $1 million has been allocated to the company thus far. LuxWall opened the first phase of its factory in August 2024.
It remains uncertain whether the DOE plans to proceed with additional cancellations from the $20 billion list of grants. Following the announcement of $7.56 billion in funding cuts, Secretary Wright indicated to CNN that “many more” cancellations would occur this fall. These cuts have drawn criticism from Democrats, while some Republicans have urged the DOE to preserve projects in their states. For example, Senator Shelley Moore Capito has advocated against eliminating funding for a “blue” hydrogen project in Appalachia that would utilize natural gas and carbon capture technology.
As the situation develops, the implications of these cancellations on the energy sector and related industries will continue to unfold.
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