U.S. Weighs Cuts to $12 Billion in Clean Energy and EV Funding

The U.S. government is reviewing plans to cancel billions in clean energy investments, potentially impacting major electric vehicle (EV) and carbon capture projects funded under the Biden administration. According to a list reviewed by Reuters, the Department of Energy (DOE) is assessing up to $12 billion in grants and loans, including large-scale direct air capture hubs and EV manufacturing initiatives.

Among the affected projects is a billion-dollar carbon capture hub involving Occidental Petroleum. Also under review are key auto sector awards: $500 million for General Motors’ conversion of its Lansing Grand River Assembly Plant in Michigan for EV production; $335 million for Stellantis to reopen and convert its Belvidere, Illinois, plant for electric trucks; and $250 million for Stellantis’ Indiana Transmission Plant to produce EV components.

The DOE has already announced the cancellation of $7.56 billion in financing for projects that failed to meet taxpayer return requirements. Other potential rollbacks include $32 million for Hyundai Mobis in Ohio, $89 million for Harley-Davidson’s York, Pennsylvania EV expansion, $80 million for Blue Bird’s electric school bus facility in Georgia, and $75 million for Cummins’ zero-emission powertrain project in Indiana. Volvo Group’s $208 million plan to upgrade facilities across Maryland, Virginia, and Pennsylvania also faces review.

The DOE stated that each project is being reviewed individually, emphasizing that no final decisions have been made beyond previously announced cuts. Earlier terminations included $331 million at Exxon’s Baytown, Texas refinery, $500 million for Heidelberg Materials in Louisiana, and $375 million for Eastman Chemical in Texas.

White House budget director Russell Vought recently said the administration aims to terminate about $8 billion in climate-related funding across 16 Democratic-led states. Major companies including GM, Harley-Davidson, and Stellantis have declined to comment on the potential funding cancellations.