A lithium-ion battery maker announced it was cancelling plans for the construction of a $504 million battery production plant slated for Kentucky following a decision by the Biden administration to rescind a $200 million grant.
(Bloomberg) — A lithium-ion battery maker announced it was cancelling plans for the construction of a $504 million battery production plant slated for Kentucky following a decision by the Biden administration to rescind a $200 million grant.
Microvast Holdings Inc. said plans for its polyaramid separator production facility, which would be the first in the world and was expected to employ more than 550 people in southern Kentucky, were put on hold “due to recent developments,” according to a statement Friday.
Read More: Energy Department Cancels $200 Million Grant to Microvast
The Energy Department announced in May it had cancelled plans to award the Stafford, Texas-based company the funds amid concern about the company’s ties to China. Kentucky officials followed suit, voiding a planned $21 million in economic incentives, according to news reports. Microvast has a separate electric-vehicle battery manufacturing plant under construction in Tennessee, which is slated to begin production in the fourth quarter.
The company had previously disclosed in a filing with the Securities and Exchange Commission that a “substantial portion” of its operations are located in China and that it receives subsidies from the government. Its operations are also “subject to extensive” regulation by the Chinese government, the filing added.
Shares of Microvast have declined 23% since the funding was pulled in May.
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