The Energy Department has decided not to award a $200M grant to battery manufacturer Microvast Holdings amid Republican concerns about the company’s alleged China connections.
The department last year selected Microvast to receive a grant under the Bipartisan Infrastructure Law. However, it said Tuesday that the grant had not yet been finalized and that it would ultimately cancel negotiations.
“The Department can confirm that it has elected to cancel negotiations and not to award Microvast funds from this competitive funding opportunity,” a department spokesperson said in an emailed statement.
The department also said that it is not uncommon for companies that are selected for grants to ultimately not receive them.
“As responsible stewards of American taxpayer dollars, the Department of Energy 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 under a DOE competitive funding opportunity to not ultimately receive an award,” the spokesperson said.
Republicans had provided significant pushback to the grant, citing SEC filings in which Microvast said its operations “are subject to extensive PRC [People’s Republic of China] government regulation” and that it plans on “leveraging our knowledge base in the PRC and to continue expanding our R&D efforts there as well.”
“The Department of Energy has finally retreated from sending U.S. taxpayer dollars to Microvast,” Sen. John Barrasso (R-Wyo.) said in a written statement.
“I’m stunned it took the Biden Administration this long to admit the obvious: no company beholden to Communist China should be considered for U.S. government grants or loans.”
The Hill has reached out to Microvast for comment.