Battery manufacturer will not receive $200 million grant from DOE because of ties to China

May 24, 2023
The award, part of the Bipartisan Infrastructure Law, was going to be used to build a new facility in Tennessee.

Microvast Holdings, a manufacturer of lithium-ion battery solutions, will not be receiving a $200 million grant from the U.S. Department of Energy (DOE). The award, part of the Bipartisan Infrastructure Law, was going to be used to build a new facility in Tennessee. According to Reuters, two Republican lawmakers raised concerns about the deal, citing Microvast’s ties to the Chinese Communist Party (CCP). These hesitations were expressed in a letter to Energy Secretary Jennifer Granholm in December.

In a statement to the Associated Press, the Energy Department said that it “maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations″ to ultimately be denied a federal grant.

Microvast released its own statement. Yang Wu, Microvast’s founder, chairman, President, and Chief Executive Officer, said “the Company is surprised by the DOE’s decision to withdraw the grant, which was designed to help build a new facility in Kentucky that would employ hundreds of people. Microvast is based in Texas, its shares are traded on Nasdaq, and the operations for our global business are centralized in the U.S. Neither the Chinese government nor the Chinese Communist Party has any ownership in the Company, nor do they control or influence Company operations in any way. The Company is therefore considering all of its options.”

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