Microvast eyes options after US energy dept cancels $200 mln grant

Microvast Holdings

24/05/2023 13:41

May 24 (Reuters) - Microvast Holdings  MVST.O  is
considering all of its options, the lithium batter maker said on
Wednesday, after 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.
    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 (CCP) that raised "serious concerns about the department's
ability to protect U.S. taxpayer dollars."
    Shares of the Texas-based company rose 5% in premarket
trading, erasing some losses after a 36.4% fall on Tuesday.
    The grant was further targeted to support work by General
Motors  GM.N  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.
    
    
    

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Shweta
Agarwal)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))