Dive Brief:
- The Department of Energy’s Office of Manufacturing and Energy Supply Chains canceled more than $700 million in grants last week, a DOE spokesperson told Utility Dive in an email Monday.
- The spokesperson did not respond to a question about which grants were terminated. E&E News, which first reported the cancellations, said the cuts targeted battery and manufacturing projects in development by Ascend Elements, American Battery Technology, Anovion, ICL Specialty Products and LuxWall.
- “These projects had missed milestones, and it was determined they did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” the spokesperson said.
Dive Insight:
ICL Specialty Products had received a $197 million grant which would have been used to build a new battery plant near its existing one in St. Louis, St. Louis Public Radio reported last week, but the $500 million project is now “in doubt” after the loss of the grant.
Parent company ICL Group wrote in an Oct. 9 SEC filing that it had received a notice from DOE that the agency “has decided to discontinue the funding for the establishment of a lithium iron phosphate … cathode active material manufacturing plant” as part of a “comprehensive review that led to the discontinuation of the funding eligibility for a number of projects that were previously approved for grants in the renewable energy sector and other sectors.”
ICL Group said DOE explained the decision was made “with the objective of aligning such grants with the Congressional budget framework and, among other considerations, in response to the anticipated increase in the Project’s costs.”
American Battery Technology’s CEO Ryan Melsert told Bloomberg on Oct. 16 that the company will forge ahead with its $2 billion lithium mine and refinery project, even without the $57.7 million grant from DOE.
These grant cancellations are the first cuts to be confirmed from a broader list of planned funding cuts for 600 clean energy projects totaling $23 billion, “including a full termination of funding for the Regional Clean Hydrogen Hubs program,” according to the Clean Air Task Force.
Earlier this month, DOE announced the cancellation of $7.6 billion in funding for 321 clean energy projects, all located in states that voted for former Vice President Kamala Harris in the 2024 election.
DOE offered a similar justification for those earlier cuts.
“Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” the agency said.
DOE noted that award recipients had 30 days to appeal this decision and “some of the projects included in this announcement have already begun that process.”
Correction: We have updated this article to correct the size of American Battery Technology's grant.
