Trump DOE Confirms It’s Canceling Over $700M in Manufacturing Grants
Trump DOE confirms it’s canceling over $700M in manufacturing grants, marking a major policy shift for America’s clean energy sector. The Department of Energy (DOE) has officially announced that $720 million in manufacturing awards are being revoked, a move affecting key startups in the battery materials, recycling, and green tech industries.
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Clean Energy Projects Face Massive Funding Cuts
The DOE’s decision impacts several companies focused on battery materials, lithium-ion recycling, and super-insulating window production. According to Energy Secretary Chris Wright, the agency reviewed contracts issued during the Biden administration, citing that several “missed milestones” and “failed to adequately advance national energy needs,” as shared by DOE spokesperson Ben Dietderich to E&E News.
These grants, originally authorized under the Bipartisan Infrastructure Law of 2021, were awarded mainly during 2023 and 2024. This law was intended to strengthen U.S. energy independence and boost clean manufacturing. However, the Trump DOE’s reversal signals a dramatic shift in energy priorities, focusing more on fiscal restraint and project accountability.
Revisiting Biden-Era Contracts
The Trump DOE confirms it’s canceling over $700M in manufacturing grants that were largely distributed to startups before the 2024 presidential election. Officials argue that these projects did not demonstrate sufficient progress or clear economic benefits. This mirrors earlier moves by the previous Trump administration, which also scrutinized last-minute grants issued between Election Day and Inauguration Day.
Startups Left Scrambling for Funds
Among the affected companies is Ascend Elements, a Massachusetts-based startup pioneering battery recycling technology. The firm received a $316 million award in 2022 to support a $1 billion facility in Kentucky, designed to convert manufacturing waste and old batteries into key lithium-ion materials. Federal records show Ascend has already received $206 million. Despite the funding gap, the company plans to continue operations with alternative capital sources.
Another impacted startup, Anovion Technologies, was awarded $117 million to reshore the production of synthetic graphite — a critical component for battery anodes. The project aimed to reduce U.S. dependence on Chinese imports and strengthen domestic supply chains. With the DOE’s withdrawal, Anovion now faces significant delays and potential layoffs.
Economic and Political Ripples
Experts say the Trump DOE’s decision to cancel over $700M in manufacturing grants could slow the momentum of America’s clean energy transition. These grants were central to building a domestic battery supply chain — a priority for reducing reliance on foreign materials. The cancellations may also deter private investors from backing similar green tech ventures, citing uncertainty in federal support.
Critics argue the move undermines the long-term goals of energy security and innovation. Environmental groups and industry advocates claim the decision prioritizes short-term political optics over sustainable growth. Supporters, however, view it as a necessary correction to prevent wasteful spending on underperforming projects.
What the Decision Means for the Future
While the Trump DOE confirms it’s canceling over $700M in manufacturing grants, analysts believe this won’t entirely derail the clean energy agenda. Many companies, including Ascend Elements, continue to attract private capital due to the rising demand for electric vehicles and renewable technologies.
Still, the DOE’s tighter oversight may reshape how future grants are awarded. New funding rounds could prioritize projects with measurable progress, commercial readiness, and stronger financial backing.
A Shift Toward Accountability
The DOE’s recent statement highlights a renewed focus on accountability and measurable impact in federal spending. The department emphasized that all projects must “demonstrate clear progress toward national energy goals” to retain funding. This approach aligns with the Trump administration’s broader economic strategy centered on efficiency, domestic job creation, and fiscal prudence.
Clean Tech Industry Reacts
Reactions across the clean energy industry have been mixed. Some executives express frustration over the sudden funding halt, warning of stalled innovation and job losses. Others acknowledge the need for rigorous performance standards to ensure taxpayer money supports viable technologies.
A representative from the National Clean Energy Association commented that while oversight is important, “blanket cancellations risk dismantling years of R&D and partnership-building that positioned the U.S. as a global clean tech leader.”
With the Trump DOE confirming it’s canceling over $700M in manufacturing grants, the future of several American energy startups hangs in the balance. Analysts expect the administration to announce new guidelines for federal energy investments, potentially shifting focus from early-stage research to commercial-scale operations.
As the debate over energy priorities continues, one thing is clear: the U.S. clean manufacturing landscape is entering a new era — one where accountability, performance, and strategic alignment will determine which innovations thrive and which fade away.
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