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 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 return a request for comment.
Republicans and Democrats praised the department’s decision.
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