Kentucky pauses incentives for battery maker whose federal loan was nixed after claims of China ties
Kentucky officials say they won't begin paying $21 million in economic incentives for a proposed electric vehicle battery facility until the company further explains why federal officials abruptly rejected a $200 million loan
NASHVILLE, Tenn. (AP) — Kentucky officials say they won't start paying out $21 million in economic incentives for a proposed electric vehicle battery facility until the company further explains why the U.S. Department of Energy abruptly rejected a $200 million loan for the project after some congressional Republicans argued the firm has improper ties to China.
Texas-based Microvast was one of 20 companies to win preliminary grants totaling $2.8 billion to boost the domestic manufacturing of batteries for electric vehicles. The company is building battery plants in Kentucky and Tennessee and was in talks with the Energy Department for a $200 million grant funded through the 2021 infrastructure law.
Yang Wu, Microvast’s founder and CEO, said the company was surprised by the Energy Department's decision against awarding the loan, which would fuel plans for a Kentucky facility focused on a new technology for batteries called polyaramid separator. The department did not offer a reason for cutting off talks.
It’s unclear if the company will still try to build out the project in Kentucky. A company spokesperson did not respond to emails asking if plans for a facility there were still moving forward. A slideshow for an investors presentation days after news of the federal denial broke late last month did not mention Kentucky or the loan. The company has also sought to fight back against claims of inappropriate Chinese influence.
