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Next-gen battery materials manufacturer Group14 lays off workers in Washington state

Next-gen battery materials manufacturer Group14 lays off workers in Washington state

Geek Wire02-07-2025
Sustainability: News about the rapidly growing climate tech sector and other areas of innovation to protect our planet. SEE MORE
Group14 has delayed the start of production of its battery materials at its BAM2 facility in Moses Lake. (Group14 Photo)
Next-gen battery materials manufacturer Group14 Technologies laid off an undisclosed number of workers as tariff uncertainties and new federal policies create significant obstacles for the clean energy sector.
The company, which has facilities in Washington and South Korea, confirmed for GeekWire that it had taken steps on Tuesday to 'rebalance our workforce to ensure the long-term resilience and competitiveness of our business.'
Group14 recently disclosed that it was delaying the start of production at its flagship battery materials plant in Eastern Washington's Moses Lake from an initial target of late 2024 to a start date in early 2026.
'Shifts in demand, and uncertainties in global trade relationships have impacted our industry,' said spokesperson Katie Rolnick by email. 'We are taking proactive steps to align our operations with current realities while positioning ourselves for future growth.'
Rolnick added that the company is continuing to support its joint venture in South Korea with electronics company SK materials. That plant will begin operating at full capacity this month and its output will be available to Chinese customers, avoiding the impact of U.S tariffs.
Group14's headcount is 400 people. The layoffs impacted only its U.S. workforce.
The company has developed a silicon anode material for use in lithium-ion batteries that holds more power and requires less time for recharging. The product is suitable for use in electric vehicles, consumer electronics and utility-scale batteries that can help meet power demand for data centers.
The Senate on Tuesday narrowly passed a massive domestic policy bill that slashes clean energy supports. The Senate's version of the legislation went slightly easier on battery, nuclear and geothermal projects than the previously approved House version of the bill. It retained a full tax credit for these projects if construction begins before the end of 2033, and phases out the credit completely by 2036.
But the Senate took a harder line on a $7,500 tax credit to cut the cost of EVs for consumers, eliminating the break by the end of September, instead of the House deadline of the end of the year. The two chambers are aiming to finalize the bill this week.
In a GeekWire interview last month, Group14 CEO Rick Luebbe shared areas of optimism for his company's prospects despite recent headwinds. Luebbe said global battery demand will continue long term and he was hopeful that data centers represent a large, new market for batteries.
'We are behind a whole new opportunity in advanced materials production for all kinds of applications that are really critical,' Luebbe said.
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Just how much has DOGE exaggerated its numbers? Now we have receipts.
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Just how much has DOGE exaggerated its numbers? Now we have receipts.

The Trump administration's claim that it is saving billions of dollars through DOGE-related cuts to federal contracts is drastically exaggerated, according to a new POLITICO analysis of public data and federal spending records. Through July, DOGE said it has saved taxpayers $52.8 billion by canceling contracts, but of the $32.7 billion in actual claimed contract savings that POLITICO could verify, DOGE's savings over that period were closer to $1.4 billion. Despite the administration's claims, not a single one of those 1.4 billion dollars will lower the federal deficit unless Congress steps in. Instead, the money has been returned to agencies mandated by law to spend it. DOGE's latest figures on contract cuts ticked up to $54.2 billion in an update posted on Tuesday. POLITICO's findings come on top of months of scrutiny of DOGE's accounting, but the magnitude of DOGE's inflated savings claims has not been clear until now. Even so, President Donald Trump claimed hundreds of billions of dollars had already been used to reduce the federal deficit. The former head of DOGE, Elon Musk, initially promised the organization would reduce the deficit by $2 trillion. Many in Trump's Cabinet have also celebrated DOGE's efforts, including his secretaries of Health and Human Services, Veterans Affairs and Agriculture. DOGE's savings calculations are based on faulty math. The group uses the maximum spending possible under each contract as its baseline — meaning all money an agency could spend in future fiscal years. That amount can far exceed what the government has actually committed to pay out. Counting this 'ceiling value' gives a false picture of savings for taxpayers. 'That's the equivalent of basically taking out a credit card with a $20,000 credit limit, canceling it and then saying, 'I've just saved $20,000,'' said Jessica Tillipman, associate dean for government procurement law studies at George Washington University Law School. 'Anything that's been said publicly about [DOGE's] savings is meaningless.' The White House disagrees. DOGE has produced 'historic savings for the American people,' White House principal deputy press secretary Harrison Fields wrote in an email in response to questions about DOGE's activities. DOGE's site, he said, provides up-to-date and accurate information. 'All numbers are rigorously scrubbed with agency procurement officials and updated in real time based on current information,' he said. DOGE's public list of records, or what it calls its "wall of receipts," says the site only represents a subset of the organization's overall savings. However, even among the sample of contracts it posted through July, roughly 40 percent of claimed savings could not be verified due to a lack of identifying information. DOGE claims it has saved $202 billion across the whole of the federal government from a combination of contract, lease and grant cancellations, workforce reductions, regulation clawbacks and more. To create savings from canceling contracts or other awards, DOGE has a few options: The president could formally claw back funds through Capitol Hill — a process where Congress cancels dollars it had previously appropriated, which it did this month for the first time in decades — or agencies could reclaim awarded funds for later use, an action known as a deobligation. To assess DOGE's actual savings so far from canceled contracts, POLITICO created a database of every traceable termination posted on DOGE's wall of receipts through July 26 that was at least one month old, about 10,100 contracts. Over this period, agencies have issued clawbacks, or deobligations, on less than 30 percent of those awards, recovering $1.4 billion in funds. Even if agencies immediately recovered all unspent funds from these 10,100 contracts, the total savings would amount to less than 40 percent of what DOGE has taken credit for. And agencies would still be on the hook to spend those dollars unless Congress or the president intervened, though some in the administration have said they could simply spend less. Roughly 2,400 cancellations on DOGE's termination list through July cannot be independently verified. Some of these cancellations were simply too recent to show up in public records, but most had their identifying information redacted by DOGE, which has often labeled those entries as 'unavailable for legal reasons.' DOGE's list is filled with exaggerated savings claims across the federal government. Some contracts included on DOGE's termination list have only been modified and not canceled; others have been removed from the list without explanation. Under the VA, for example, DOGE's page reported savings of $932 million from contracts canceled though June, including awards for a cancer registry, suicide prevention services and other health care support. Federal records show the VA recovered just $132 million from these awards, or less than 15 percent of what DOGE claimed, and that the VA reinstated the contract for suicide prevention support. These contracts were canceled because VA staff could perform the necessary work in-house, VA press secretary Pete Kasperowicz wrote in an email. The VA, he said, has avoided up to $27 billion in costs from reviewing and downsizing thousands of contracts 'to ensure each one of them benefits Veterans and is a good use of taxpayers' money.' But the bulk of DOGE's actions show a different approach to savings entirely: lowering the ceiling value, which experts equate to an accounting trick. Lowering the ceiling decreases the potential price tag, but it's not guaranteed those dollars would have been spent to begin with. 'Voila! Half a billion saved. Time for lunch,' said one federal contracting lawyer with nearly four decades' experience advising government contractors who was granted anonymity to explain the practice freely. At most, for contracts where the ceiling exceeds the obligated amount, this kind of action amounts to avoiding future expenses that were never guaranteed to happen. In total, the administration removed $14 billion from contract ceilings on the traceable contracts on its 'wall of receipts' through July — a far cry from the $32.7 billion DOGE claimed to have saved from terminating them. In reality, the ultimate savings from terminations are nearly impossible to predict. DOGE's calculations, for instance, don't account for expenses that come from ending contracts prematurely, like payments for outstanding leases, subcontractors, or work already performed, which can add up quickly. 'There's no certainty because we haven't finished understanding termination costs of anything,' Tillipman said. That can take years to untangle. Until then, 'we don't know any of it,' she said, referring to savings. Plus, even drafting a contract costs money. 'You have spent multiple months or even years and many people's time getting to the best negotiated terms for the public's interest,' said Cristin Dorgelo, a former senior adviser in the Office of Management and Budget during the Biden administration. By law, agencies are still required to spend any funds Congress appropriated to them, including money they claw back from individual projects. 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By the time the contract was added to the DOGE termination list, that savings claim skyrocketed to $2.9 billion. DOGE's math was simple: It took the difference between the contract's $3.3 billion ceiling and the amount that had been formally awarded, or obligated — $428 million — and called it savings. But HHS and its Office of Refugee Resettlement were not on track to spend anywhere close to the contract's ceiling. That ceiling represented what it would cost the government to fund the Pecos center at full capacity — 3,000 children — for 365 days a year, for five years. If the center was not full, the government would pay less, according to four people familiar with the contract who were granted anonymity for fear of retribution. But the Pecos campus had been empty since February 2024. Instead, an $18 million price tag per month covered operating costs to keep the center ready to receive children with just two weeks' notice — an option the refugee resettlement office invoked at least twice during the lifetime of the contract. In total, the resettlement office had committed to pay no more than $428 million in rental, maintenance, security and IT expenses for the 80-acre campus through November, the four people said. At that time, the contract would be reviewed for renewal or cancellation. 'The bottom line is that the contract already had built in savings and efficiency into the way it was by the way it was structured,' one of the four people said. The most the government could save by canceling the contract for the Pecos campus before the November decision date would be about $126 million, or the amount the contractor, Family Endeavors, had yet to withdraw for upcoming monthly expenses. That's 4 percent of DOGE's $2.9 billion in claimed savings. Family Endeavors referred POLITICO to a written statement responding to the contract's cancellation that said the group's mission of 'serving vulnerable communities' is ongoing. To date, no funds have been returned to the Treasury from canceling this contract. ORR has not recalled funds because it anticipates future termination costs, according to the four people familiar with the contract. By the time that happens, actual savings from canceling this contract will be even less. 'The Biden Administration wasted more than $1.8 billion dollars on a facility to house illegal aliens, which has not been used in the last year,' HHS director of communications Andrew G. Nixon wrote in an email. 'Under Secretary [Robert F.] Kennedy's leadership, HHS is ensuring that taxpayer dollars are being spent wisely and not in support of illegal immigration.' The Interior Department, which administers the contract, referred questions to HHS. DOGE also claimed $166 million in savings from canceling a contract that plays a central role in the Energy Department's ability to keep household appliances like refrigerators and microwaves as efficient as possible. The Energy Department is required by law to set efficiency standards on roughly 70 products and appliances in order to reduce energy demand. Under an eight-year contract DOGE claims to have canceled, consulting firm Guidehouse Inc. provided the analysis used to set these standards. The Energy Department said the contract had not been canceled, but reduced, saying it achieved 60 percent 'in significant savings for the American taxpayer.' DOGE posted the contract on its list of terminations a few weeks before the agency repealed 20 appliance efficiency standards in May without any supporting evidence, said Emily Hammond, who served as deputy general counsel at the Energy Department during the Biden administration. 'DOE seems to be abnegating its duties,' Hammond said. 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The future of the 'wall of receipts' and of the organization remains uncertain. Updates to DOGE's public accounting page have become more infrequent since Musk's exit in May. The page's three most recent updates represented the longest periods of silence since the site launched in February. It was stagnant for most of June and went nearly four weeks before posting new terminations in July. Another 17 days passed before its latest update in August. The same is true of Trump and Musk's relationship. After leaving DOGE, Musk declared war on Trump's megabill, which the president signed into law on the Fourth of July. The two took their breakup to X, lobbing insults on the world's stage. 'What the heck was the point of @DOGE if [Trump]'s just going to increase the debt by $5 trillion??,' Musk wrote on X in July, referring to the deficit increase. The law will increase the national debt by $3.4 trillion, according to the Congressional Budget Office. 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When available, old versions of the DOGE data were used for USAID contract cancellations that were stripped of identifying information on the DOGE website due to 'legal reasons' without further explanation. Among contract terminations where savings could be verified, POLITICO compiled every transaction that has taken place between Jan. 20 and July 26, the date of DOGE's second-most recent update, in order to assess savings created by DOGE so far. 'Savings' represents dollars put back into the hands of agencies for later use. Agencies are required to spend dollars appropriated to them by Congress. Contracts added, removed or modified in DOGE's Aug. 12 data are not part of this analysis. Only 30 percent of the contracts POLITICO reviewed had deobligations, or money returned to the agency. The remainder either had no transaction activity during the Trump administration through July 26 or had only positive obligations during that period. Each contract has a few possible states: : POLITICO considered all deobligations reflective of DOGE's savings to date. In some cases, agencies added funds to a contract after a deobligation or reduction in ceiling value, effectively reducing the amount saved. POLITICO counted all activity on a contract after the first deobligation or reduction in ceiling value to show the net total of dollars saved or ceiling value reduced, respectively. : While DOGE says it has terminated the contract, there has been no change, negative or positive, to the amount the government has committed to spending. These contracts result in $0 in government savings to date by POLITICO's accounting. : There are many instances where contracts on DOGE's termination list showed additional spending during the search period and no deobligations. POLITICO did not count these dollars against DOGE's savings tally (unless that positive obligation happened after a negative obligation). 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