Battery supplier Microvast eyes options after U.S. cancels $200 million grant
Lithium ion battery supplier Microvast Holdings said it is considering all options after the U.S. Energy Department canceled a $200 million grant following lawmakers’ concerns over its alleged links to China.
“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,” Microvast CEO Yang Wu said in a statement on Wednesday.
The grant, which stemmed from U.S. $1 trillion 2021 bipartisan infrastructure law, was to help Microvast build a plant in Tennessee.
Two Republican lawmakers criticized the decision to grant funding in a letter last December to Energy Secretary Jennifer Granholm, saying Microvast had ties to the Chinese Communist Party that raised “serious concerns about the department’s ability to protect U.S. taxpayer dollars.”
The grant was further targeted to support work by General Motors and Microvast on developing specialized EV battery separator technology.
There will be some timing impact on bringing the separator technology to market now owing to U.S. DOE’s decision as it came as a “surprise,” Microvast said.