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The Biden administration informed lawmakers Monday that it will no longer award a $200 million grant to a Chinese-linked energy technology firm in an unexpected reversal.
In a call with congressional staff Monday evening, Department of Energy (DOE) officials said Microvast, a Texas-based maker of technology for electric vehicle batteries, won't receive the lucrative grant which had been earmarked under the 2021 infrastructure package. Republican lawmakers have for months called on the agency to rescind the grant after its Chinese ties were revealed last year.
"As responsible stewards of American taxpayer dollars, the Department of Energy 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 under a DOE competitive funding opportunity to not ultimately receive an award," a DOE spokesperson told Fox News Digital in a statement.
"The Department can confirm that it has elected to cancel negotiations and not to award Microvast funds from this competitive funding opportunity," the statement continued.
The spokesperson didn't say what specifically caused the DOE to cancel negotiations with Microvast.
During a grant awarding process, the DOE is required to assess a number of factors including the fitness of an applicant to carry out the scope of its responsibilities under the award, the applicant's past performance including audit reports, its financial management and its accounting systems. Grantees are required to share a large amount of confidential information during the process which can factor into the DOE's final decision.
The DOE announced in October that Microvast would be one of just 20 American companies to receive a portion of the nearly $3 billion appropriated through the infrastructure bill for a program designed to boost domestic battery manufacturing capabilities. Energy Secretary Jennifer Granholm touted Microvast and the other grant recipients as examples of companies that would boost "American-made" batteries.
However, 69% of Microvast's revenue was generated in China and just 3% came from the U.S., according to a third quarter financial disclosure it filed with the Securities and Exchange Commission (SEC) last month. In the same filing, the company acknowledged that the Chinese government "exerts substantial influence" over its business activities and "may intervene at any time and with no notice."
https://www.foxnews.com/politics/biden-admin-pulls-grant-energy-firm-chinese-ties-stunning-reversal