US cancels talks on $200 mln for Microvast battery company -source (updated)

Microvast Holdings

22/05/2023 22:34

(Adds details from source and background)
       WASHINGTON, May 22 (Reuters) - The U.S. Energy
Department decided on Monday to cancel contract  negotiations on
a $200 million award for Microvast Holdings  MVST.O , a lithium
battery company, a source familiar with the matter said.
    The department had been in talks for $200 million in funding
to Microvast from the 2021 bipartisan infrastructure law for
developing domestic manufacturing bases and supply chains. 
        Last December, two Republican lawmakers had 
    slammed the decision to grant the funding
     in a letter to Energy Secretary Jennifer Granholm saying
Microvast had ties to the Chinese government.
  
        The source said the decision to cancel the negotiations
did not have to do with any concerns about China ties. Contract
decisions are made on factors including company's past
performance, financial management and accounting systems, the
source said.  
  
        
  

 (Reporting by Timothy Gardner
Editing by Chris Reese and Marguerita Choy)
 ((timothy.gardner@thomsonreuters.com; +1 202 380-8348 (Twitter
@timogard); Reuters Messaging:
timothy.gardner.thomsonreuters.com@reuters.net))