Biden Administration's Funding to Battery Companies with China Operations Under Scrutiny - EnergyPortal.eu

Biden Administration's Funding to Battery Companies with China Operations Under Scrutiny

Energy Secretary Jennifer Granholm did not definitively respond when asked about the possibility of providing funding to companies that have substantial operations in China. The question arose due to the Department of Energy’s announcement of a grant worth $200 million for a lithium battery company, Microvast. The company, while registered in Texas, has a significant portion of its operations in China.

This conversation took place a week after Granholm revealed to a Senate committee that the department is still evaluating the grant proposal to Microvast. The grant announcement had been made a few weeks before the midterm election and was met with applause. However, since then, some lawmakers have criticized the move due to Microvast’s extensive ties with China.

Granholm reassured that no ‘state-owned enterprise’ in China would be a recipient of funds from the Bipartisan Infrastructure Law when questioned by Senator Eric Schmitt. However, she did not directly respond when Schmitt questioned the potential funding for companies that have significant operations in China. Granholm only stated that the department uses a specific vetting program to identify where control over a technology lies and to ensure that it benefits the U.S., not other countries.

Senator Eric Schmitt raised concerns over the proposed grant to Microvast, which would be used to finance a battery separator facility in Tennessee. While the Department of Energy previously announced the grant as finalized, Granholm clarified that the awards are still undergoing vetting to ensure that no funding ends up in countries of concern.

Although no funding has yet been released, this clarification confirmed that the funds are subject to thorough vetting before delivery. Despite criticisms, the Department of Energy continues to defend the proposed grant by affirming that Microvast is an American company with its headquarters in Texas.