House Science, Space, and Technology Committee Chairman Frank Lucas released a statement today after receiving information that the Department of Energy (DOE) will not be giving a grant to Microvast, a company with close ties to the Chinese Communist Party (CCP).
“This is a win for taxpayers and American businesses,” Lucas said. “On no account should our tax dollars be funding a company with ‘substantial’ ties to the Chinese Communist Party. These funds are intended to strengthen America’s battery production and supply chain, not to tighten China’s stranglehold on these supplies. I’m pleased with DOE’s decision, but incredibly frustrated that it took the Department six months and multiple letters from our Committee to come to such an obvious conclusion. We’ll continue to hold the Administration accountable for its funding decisions and ensure that American taxpayer dollars are protected from exploitation by the CCP.”
The Department of Energy announced in October of 2022 that it was awarding Microvast $200 million to strengthen American battery production. The grant was among the first batch awarded under the Biden Administration’s multibillion-dollar infrastructure bill.
Lucas raised concerns with this award in December of 2022 in a letter to Energy Secretary Jennifer Granholm where he pointed out that, “Microvast itself discloses that the Chinese government ‘exerts substantial influence’ over their business activities and ‘may intervene, at any time and with no notice.’” He requested an immediate pause on any further funding of the program at that time. He sent a follow-up letter in January and another in March.