But at least two federal agencies within the Obama administration -- the Energy Department itself and the Recovery Accountability and Transparency Board, which oversees the stimulus program --
forwarded the case to the Energy Department's inspector general for review, FoxNews.com confirmed late Friday.
"The Energy Department takes these allegations very seriously and has asked the Energy Department's Inspector General to investigate the matter to determine whether the company's requests for partial reimbursement of expenses under the grant have been legitimate," an Energy Department spokeswoman said in a statement. "The department is committed to ensuring that every taxpayer dollar is spent appropriately to achieve the goal of building a competitive, advanced battery industry in the U.S."
The spokeswoman said any expenses found not to be "legitimate work" under the grant will have to be reimbursed to the government.
It's unclear how much of the $150 million grant has been tapped to date. Under the terms, the company is supposed to match its federal grant money dollar for dollar, and is reimbursed in increments.
The facility has been supported in the past by members of both parties.
It also has received sizeable tax breaks from the local government.
A spokesman for the LG Chem plant told FoxNews.com last week that battery production is expected to pick up once Volt assembly lines in Detroit resume production this month. He said the facility has spent the past two years building infrastructure and conducting pre-production "test runs."
"The market conditions haven't been as favorable, but this hasn't slowed down plans one bit," Randy Boileau said.
"LG Chem has repeatedly said that this facility is a critical component for them globally."