Energy Department drops controversial project after the Free Beacon revealed company’s Chinese Ties
Posted BY: | NwoReport
The Biden administration canceled a pending $200 million grant to lithium battery maker Microvast on Monday, nearly six months after the Washington Free Beacon first reported on the company’s extensive operations in China.
The major reversal comes after Republican lawmakers spent months pressing Energy Secretary Jennifer Granholm to scrap the deal, citing Microvast’s extensive operations in China and its CEO’s participation in a Chinese government-sponsored talent recruitment program.
The Chinese foreign ministry said it opposed the White House’s decision, according to the state-controlled Global Times. Microvast’s stock dropped sharply on Tuesday following the news.
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The Department of Energy has faced criticism from lawmakers since it announced last October that it selected Microvast for a $200 million grant to build a battery separator facility in Tennessee. The proposed plant would have drawn funding from the Bipartisan Infrastructure Law that was intended to counter China’s dominance over the global battery industry.
Although Microvast’s corporate headquarters are in Texas, financial records show the company operates primarily out of China, the Free Beacon reported in December. The company disclosed to shareholders last year that the Chinese government “exerts substantial influence over the manner in which we must conduct our business activities and may intervene, at any time and with no notice.”