Energy Department cancels $700 million in manufacturing and battery projects
The Department of Energy has cancelled $700 million in federal battery and manufacturing grants, according to E&E News, which first reported the cuts October 20. Without naming specifics, DoE spokesperson Ben Dietderich said the grants were either deemed negative investments or that recipients had missed unspecified “milestones.” The grants follow an earlier tranche of $8 billion in cuts the Department of Energy made October 2.
According to E&E News, the $700 million in grants were issued by the Department of Energy’s office of Manufacturing and Energy Supply Chains to LuxWall, a glass manufacturer, and four battery companies: Ascend Elements, American Battery Technology Co., Anovion and ICL Specialty Products, several of which had agreed to use the funds to build or operate factories.
- Ascend Elements received a $316 million grant to build battery components at factory the company plans to build in Kentucky. The company has already received $206 million of that grant, which won’t be effected by the cancellation. In comments to E&E, Ascend CEO Linh Austin said the company plans to move ahead with its existing funding.
- ICL Specialty Products received a $197.3 million grant to build a phosphate-powder plant in St. Louis. In an SEC filing, the company said it was “reviewing” the Department’s announcement.
- Anovion received a grant of $117 million for an Alabama plant to produce synthetic graphite.
- American Battery Technology Co. received a grant of $57.7 million to build a Nevada lithium hydroxide plant, of which it has received $5.7 million. According to an SEC filing, the President’s National Energy Dominance Council had selected the for expedited permitting, and the company plans to appeal.
- LuxWall received a grant of $31.7 million to build a Detroit, Michigan advanced glass factory. It reportedly plans to appeal.
The further cuts follow $8 billion in grants cancelled by the Department October 2, citing similar rationale.
Investing in American manufacturing in 2025
This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.