Energy Dept. rejects $200M grant to battery maker after GOP criticism
WASHINGTON (AP) — The Biden administration has canceled plans to award a $200 million grant to a U.S. battery manufacturer amid criticism from Republican lawmakers over the company’s alleged ties to China. Texas-based Microvast was one of 20 companies to win preliminary grants totaling $2.8 billion to boost domestic manufacturing of batteries for electric vehicles. The company is building a battery plant in Tennessee and was in talks with the Energy Department for a $200 million grant funded through the 2021 infrastructure law.
A spokeswoman for Energy Secretary Jennifer Granholm confirmed Tuesday that negotiations with Microvast were canceled, but did not offer a specific reason.
The Energy Department said in a statement 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.
“The department can confirm that it has elected to cancel negotiations and not to award Microvast funds from this competitive funding opportunity,” spokeswoman Charisma Troiano said.
The company did not immediately return a request for comment.
Republicans and Democrats praised the department’s decision.
“This is a win for taxpayers and American businesses,” House Science Committee Chairman Frank Lucas, R-Oklahoma said in a statement. “On no account should our tax dollars be funding a company with substantial ties to the Chinese Communist Party. These funds are intended to strengthen America’s battery production and supply chain, not to tighten China’s stranglehold on these supplies.”
Lucas and other Republicans said they were frustrated that it took more than six months for the Biden administration “to come to such an obvious conclusion.” Lucas and other GOP lawmakers have repeatedly complained about what they call Microvast’s links
