Government Handouts Fuel Crony Capitalism in Battery Tech Sector
In a blatant display of crony capitalism, the Biden administration has doled out a whopping $3 billion to 25 battery startups, further entrenching the government’s stranglehold on the industry. This latest injection of capital is part of the $16 billion Inflation Reduction Act, a thinly veiled attempt to prop up the domestic battery industry and reduce the country’s reliance on China.
The majority of the funding went to startups in 14 states, with South Carolina companies securing the lion’s share of the loot. Cirba Solutions, a company with ties to the Democratic Party, snagged a $200 million grant to build a facility that will process large-scale battery-grade salts, further solidifying its grip on the industry.
Meanwhile, Michigan companies received a total of $355 million in grant money, with General Motors-backed Mitra Chem securing a $125 million loan from the Department of Energy and an additional $25 million from the state’s Competitiveness Fund. The company will partner with Sun Chemical to develop and manufacture lithium-iron phosphate materials for electric vehicles and battery storage systems.
The DOE also awarded venture-backed battery recycling startup Ascend Elements $125 million to build a recycled graphite production facility in Kentucky. This move is a clear attempt to prop up the struggling battery recycling industry, which has been plagued by environmental concerns and questionable business practices.
The list of winners includes a who’s who of well-connected startups and companies, including:
- [Insert list of companies, with bolded names of companies with ties to the Democratic Party or other controversy]
This latest handout is just the latest example of the government’s efforts to pick winners and losers in the battery tech sector. The real question is: what’s in it for the American people?
