In a significant policy shift, the U.S. Department of Energy (DOE) has confirmed the cancellation of $720 million in manufacturing grants previously awarded to companies specializing in battery materials, lithium-ion battery recycling, and advanced window manufacturing. This decision is part of a broader review initiated by Energy Secretary Chris Wright, focusing on contracts established during the Biden administration. The DOE cited unmet project milestones and insufficient advancement of national energy objectives as primary reasons for the cancellations.
These grants were originally authorized by Congress under the Bipartisan Infrastructure Law of 2021, with the majority allocated between 2023 and 2024. The current administration has previously used grants awarded during transitional periods as justification for rescinding awards.
Among the affected companies is Ascend Elements, a startup developing technology to convert manufacturing waste and end-of-life batteries into materials essential for domestic lithium-ion battery production. In October 2022, Ascend Elements received a $316 million grant toward a planned $1 billion facility in Kentucky. To date, $206 million has been disbursed. The company intends to proceed with its plans, seeking alternative funding sources to address the shortfall.
Anovion, another impacted startup, was awarded $117 million to domestically produce synthetic graphite for lithium-ion battery anodes—a market currently dominated by Chinese suppliers, who control 75% of the supply chain and produce 97% of all synthetic graphite anodes. Anovion’s facility is slated for construction in Alabama, with $13.8 million disbursed so far.
LuxWall, a company specializing in manufacturing windows with insulation properties comparable to solid walls, received a $31.7 million grant to establish a factory on the site of a former coal plant near Detroit. The grant was awarded in November 2023, with $1 million disbursed to date. LuxWall inaugurated the first phase of its factory in August 2024.
These grants were designed to help startups navigate the challenging transition from technology development to commercial deployment, often referred to as the valley of death. Government funding for first-of-a-kind facilities can attract private investment and serve as a model for future manufacturing endeavors, thereby strengthening the nation’s industrial base.
