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Why GM, Ford could lose grants worth billions in US
08 Oct 2025

The US Department of Energy (DOE) has proposed cutting billions in federal funding, a move that could impact several promising start-ups and major automakers like Ford, General Motors (GM), and Stellantis.

The proposal seeks to cancel over $500 million in contracts awarded to more than a dozen companies under the Bipartisan Infrastructure Law.

This comes on top of the Donald Trump administration's earlier announcement last week about cutting over $7.5 billion in contracts.

Major automakers also facing potential losses
Affected firms

The proposed cuts aren't just limited to start-ups. Major companies like Daimler Trucks North America, Ford, GM, Harley-Davidson, Mercedes-Benz Vans, Stellantis, and Volvo Technology of America are also facing the brunt of this decision.

GM's Lansing plant retooling at risk
Project jeopardy

GM might lose at least $500 million in grant money from a federal Domestic Manufacturing Conversion Grant program.

The funds were supposed to be used for retooling the Lansing Grand River Assembly Plant in Michigan, where GM had announced plans to make electrified vehicles including hybrids back in July 2023.

Start-ups like Brimstone could face operational disruptions
Impact assessment

Some of the awards at risk are huge and would have a major impact on the start-ups' operations if terminated.

Two awards worth over $100 million are on the chopping block, including a $189 million award to materials start-up Brimstone.

The funding was supposed to help Brimstone build a plant for producing Portland cement, alumina and other materials with less carbon dioxide emissions.

Battery materials start-ups at risk as well
Additional impacts

Chicago-based start-up Anovion, which plans to build a factory for synthetic graphite for lithium-ion batteries, is also on the list of proposed cuts.

Battery materials start-up Li Industries received $55.2 million under the Bipartisan Infrastructure Law to recycle LFP batteries, and reduce China's dominance over this supply chain.

Other building materials companies like CleanFiber and Hempitecture are also at risk of losing their grants under this proposal.