US withdraws a $200M grant given Microvast battery company

The U.S. Energy Department withdraws a $200 million grant after lawmakers voice concerns about Microvast Holdings' alleged connections to the CCP.

The grant to assist with the construction of a plant in Tennessee had been discussed by the department and Microvast. The grant was funded by the 2021 bipartisan $1 trillion infrastructure law.

Two Republican lawmakers criticized the funding choice in a letter to Energy Secretary Jennifer Granholm last December, stating that Microvast's ties to the Chinese Communist Party (CCP) raised "serious concerns about the department's ability to protect U.S. taxpayer dollars."

The grant to assist with the construction of a plant in Tennessee had been discussed by the department and Microvast. The grant was funded by the 2021 bipartisan $1 trillion infrastructure law.

Two Republican lawmakers criticized the funding choice in a letter to Energy Secretary Jennifer Granholm last December, stating that Microvast's ties to the Chinese Communist Party (CCP) raised "serious concerns about the department's ability to protect U.S. taxpayer dollars."

The grant's cancellation, according to Republican Representative Frank Lucas, is a victory for American taxpayers and businesses. In a statement, he asserted that the funds were meant to strengthen American supply chains and battery production rather than further entrench China's control over these supplies.

The lawmakers haven't gone into more detail about the company's alleged ties to the Chinese government.

Texas-based Microvast did not immediately reply to a request for comment. The company has manufacturing facilities in Tennessee, Germany, and China.

The decision to halt the negotiations may have been influenced by concerns over relations with China, but the source declined to comment on this. The source claims that decisions regarding contracts are made in light of a company's past performance, financial management, and accounting procedures.

The money from the grant was meant to help General Motors and Microvast build a new separator facility and develop specialized EV battery separator technology. The projects were projected to generate hundreds of jobs.

GM declined to respond right away to a request for comment