Energy Dept. cancels $200M grant to battery maker after GOP criticism over alleged ties to China

May 23, 2023, 12:20 PM

President Joe Biden speaks as he meets with House Speaker Kevin McCarthy of Calif., to discuss the ...

President Joe Biden speaks as he meets with House Speaker Kevin McCarthy of Calif., to discuss the debt limit in the Oval Office of the White House, Monday, May 22, 2023, in Washington. (AP Photo/Alex Brandon)
Credit: ASSOCIATED PRESS

(AP Photo/Alex Brandon)

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 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 to the Chinese Communist Party.

New Jersey Rep. Frank Pallone, the top Democrat on the House Energy and Commerce Committee, said the decision to rescind the grant “shows that the DOE is taking its stewardship of taxpayer money very seriously.″

At a Senate Energy Committee hearing in February, Sen. John Barrasso, R-Wyo., questioned whether the planned grant to Microvast would benefit China. Barrasso cited a company filing with the Securities and Exchange Commission in which Microvast said it may not be able to protect its intellectual property rights in China.

China often requires foreign companies to partner with Chinese businesses in order to operate in the country.

In a May 1 letter to Granholm, Barrasso said Microvast’s CEO had “bragged to Chinese media about Microvast’s strong ties to the People’s Republic of China.”

The 2021 infrastructure law “was ostensibly intended to develop robust domestic manufacturing bases and supply chains” for electric vehicles and other clean energy, Barrasso said. “DOE’s distribution of $200 million in taxpayer funds to a company joined at the hip with China” would be “demonstrably antithetical to the Bipartisan Infrastructure Law’s intent,” he added.

Barrasso called the Microvast grant an example of “the Solyndra Syndrome,” a reference to an Obama-era program that disbursed more than $500 million in loan guarantees to the failed solar company Solyndra. He and other Republicans said both cases demonstrated poor vetting by Democratic administrations.

The loan program largely went dormant under President Donald Trump but has been revived by President Joe Biden. It is separate from infrastructure law funding that was conditionally awarded to Microvast and other companies.

Grants announced in October were intended to help U.S. companies extract and process lithium, graphite and other battery materials. The Biden administration is seeking to boost production and sales of electric vehicles as a key part of Biden’s strategy to slow climate change and build up U.S. manufacturing.

“This is critically important, because the future of vehicles is electric,″ Biden said at a White House event last year. The Energy Department grants — along with other spending approved in the 2022 climate law — are a bid “to make sure we’re back in the (battery production) game in a big way,″ Biden said.

United States News

FILE - Drag artist Vidalia Anne Gentry speaks during a news conference held by the Human Rights Cam...

Associated Press

Trump-appointed federal judge rejects Tennessee’s anti-drag law as too broad, too vague

NASHVILLE, Tenn. (AP) — A federal judge says Tennessee’s first-in-the-nation law designed to place strict limits on drag shows is unconstitutional. In a 70-page ruling handed down late Friday night, U.S. District Judge Thomas Parker wrote that the law was both “unconstitutionally vague and substantially overbroad.” He also added that the statute encouraged “discriminatory enforcement.” […]

8 hours ago

FILE - The draft of a bill that President Joe Biden and House Speaker Kevin McCarthy of Calif., neg...

Associated Press

Debt deal imposes new work requirements for food aid and that frustrates many Democrats

WASHINGTON (AP) — Democrats are deeply conflicted about the debt ceiling deal, fearing damage has been done to safety net programs that will be difficult to unravel in the years ahead as Republicans demand further cuts. Bargaining over toughening work requirements for the Supplemental Nutrition Assistance Program, commonly known as food stamps, became the focal […]

8 hours ago

FILE - Philippe Lazzarini, Under-Secretary-General of the United Nations and Commissioner-General o...

Associated Press

UN agency for Palestinian refugees raises just $107 million of $300 million needed to help millions

UNITED NATIONS (AP) — Despite a dire warning from the U.N. chief that the U.N. agency for Palestinian refugees “is on the verge of financial collapse,” donors at a pledging conference on Friday provided just $107 million in new funds — significantly less than the $300 million it needs to keep helping millions of people. […]

1 day ago

FILE - Cherokee Nation Chief Chuck Hoskin Jr., speaks during a House Rules Committee hearing at the...

Associated Press

Hoskin seeks second term as leader of powerful Cherokee Nation

TAHLEQUAH, Okla. (AP) — Citizens of the Cherokee Nation — the largest Native American tribe in the U.S. — are set to decide whether Principal Chief Chuck Hoskin Jr. should lead the tribe for another four years as it enters a golden era after courts recognized its sprawling reservation and an operating budget of more […]

1 day ago

Associated Press

Biden set to sign debt ceiling bill that averts prospect of unprecedented federal default

WASHINGTON (AP) — President Joe Biden is expected to sign legislation on Saturday to raise the to pay all its bills. The bipartisan measure, unprecedented government default that would have rocked the U.S. and global economies. Raising the nation’s debt limit, now at $31.4 trillion, will ensure that the government can borrow to pay debts […]

1 day ago

Boats jockey for position minutes before the opening of the Sitka Sound sac roe herring fishery on ...

Associated Press

Tragedy that left 5 dead or missing puts spotlight on safety in Alaska charter fishing industry

JUNEAU, Alaska (AP) — Morgan Robidou posed next to the bright aluminum hull of his prized new vessel, a 30-foot (9-meter) fishing boat that he could use to take friends, family or tourists out after salmon or halibut in the bountiful waters of southeast Alaska. “Official boat owner,” he wrote when he posted the photo […]

1 day ago

Sponsored Articles

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Energy Dept. cancels $200M grant to battery maker after GOP criticism over alleged ties to China