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

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 preliminary grants totaling $2.8 billion to boost domestic manufacturing of batteries for electric vehicles. The company is building a battery plant in Tennessee and was 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.

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