Biden administration decides not to award $200M to battery company amid Republican pushback

The Energy Department has decided not to award $200M to battery company Microvast Holdings amid Republican concerns about alleged China connections. 

The department last year selected Microvast to receive a grant under the Bipartisan Infrastructure Law. However, it said on 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,” the 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.  

However, the cancellation comes amid significant Republican pushback on the grant and have cited SEC filings in which Microvast said that 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,” said Sen. John Barrasso (R-Wyo.), 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.