According to sources such as Politico and Reuters, the U.S. Department of Energy has officially “scrapped” a proposed $200 million grant for Microvast — a Texas-based battery company whose connections to China have “drawn criticism” from lawmakers.
This could have regional implications.
The business had “conditionally” been selected by federal authorities for battery technology expansion in Clarksville, but those negotiations have ended.
Publicly traded on U.S. markets, a Chinese subsidiary has reportedly drawn the ire of the GOP — whose officials allege that President Joe Biden’s climate and clean energy efforts will benefit Beijing more than America.
Sources indicate the monies for Microvast would have come from infrastructure laws built from bi-partisan decision in 2021.
Though no official statement has been made at this time, company leaders have insisted through Politico and Reuters that the Chinese government “has no influence” over its operations, and that Republican attacks “are purely for political points.”
Two months ago, Governor Andy Beshear and leaders from Christian County announced that Microvast Advanced Membrane Inc. would be locating a new facility in Hopkinsville — worth more than $504 million while creating more than 560 jobs.
It was to be located in Commerce Park II near the full-go construction of Ascend Elements, involving a 350,000-square-foot facility on 100 acres. The plan was to build the world’s first mass production facility for a cutting-edge polyamarid separator — creating temperature-resistant, fire-retardants commonly used in firefighting garments and insulating papers.
The technology was to be implemented as part of the U.S. Advanced Battery Consortium and the electric vehicle industry.
While in Guthrie Tuesday to discuss Logan/Todd water updates, Beshear told the News Edge that local, regional and federal discussions are to be had about Microvast’s future in Kentucky.
Tangentially, Beshear said Ascend Elements is well on schedule for its arrival in south western Kentucky.
On Monday, Microvast Holdings Inc. closing price was $2.20.
On Tuesday, it had fallen 36% to $1.40.
