The Department of Energy is planning to slash billions more from federal funding, a move that could impact not only promising startups but also major automakers like Ford, General Motors, and Stellantis, following a decision by the Trump administration.
According to an internal document reviewed by TechCrunch, which has not yet been made public, the proposed reductions would eliminate over $500 million in contracts previously awarded to more than a dozen startups. All of these targeted funds are grants issued under the Bipartisan Infrastructure Law. These potential cancellations—many of which have not been previously disclosed—would be in addition to the more than $7.5 billion in contracts the Trump administration announced it would cut last week.
Startups are not the only ones at risk. The document seen by TechCrunch indicates that other companies, including Daimler Trucks North America, Ford, General Motors, Harley-Davidson, Mercedes-Benz Vans, Stellantis, and Volvo Technology of America, may also lose grants totaling hundreds of millions of dollars. TechCrunch sources have confirmed that these are proposed reductions.
General Motors stands to forfeit at least $500 million in grant funding from the federal Domestic Manufacturing Conversion Grant program. These funds were designated for upgrading the Lansing Grand River Assembly Plant in Michigan. In July 2024, GM announced plans to manufacture electrified vehicles, including hybrids, at this facility.
Some of these grants are substantial, and their removal would have a significant impact on the operations of the affected startups. While several of these cuts were included in a list that surfaced last week, many are newly identified and have not yet been made public. TechCrunch has contacted several of the companies for comment and will update the story if they respond.
Among the largest grants facing elimination are two awards exceeding $100 million. One is a $189 million grant to materials startup Brimstone, which would have supported the construction of a facility to produce Portland cement, alumina, and other materials with lower carbon emissions.
Another major grant was awarded to Anovion, a Chicago-based startup aiming to establish a domestic factory for synthetic graphite production for lithium-ion batteries. At present, Chinese companies are the dominant players in the graphite market.
Battery materials firm Li Industries secured $55.2 million through the Bipartisan Infrastructure Law to recycle LFP batteries, an effort to reclaim part of the supply chain from China.
Other cement startups are also affected. Sublime Systems, based in Somerville, Massachusetts, received $86.9 million to develop a plant for ultra-low-carbon cement. Mountain View-based Furno, which is developing an innovative modular cement kiln, is set to lose its $20 million grant intended for building a demonstration facility in Chicago.
A number of building materials companies are also on the chopping block. CleanFiber and Hempitecture, which produce insulation for residential and commercial buildings, are at risk of losing $10 million and $8.4 million, respectively. Skyven Technologies, which develops industrial heat pumps, and Luxwall, a maker of highly insulated windows, could lose $15 million and $31 million, respectively.
At least one of the proposed grant cancellations appears to contradict the administration’s stated priorities in energy and artificial intelligence. TS Conductor, which may lose $28.2 million in funding, manufactures advanced power line conductors that can potentially double or triple the capacity of existing transmission lines. This technology could help alleviate grid congestion and speed up power delivery to data centers.
