House investigates revoked grant from Biden DOE to Chinese-owned battery company.

House Republicans are raising concerns about the Biden administration’s energy-related spending. They are questioning a Department of Energy (DOE) official about how a Chinese-owned battery manufacturer was on track to receive hundreds of millions in taxpayer money before the Biden administration pulled the funding last month.

Microvast, the Chinese-owned company, somehow qualified for a $200 million grant to build a battery separator facility in Tennessee. This grant was part of the spending allocated through the 2021 Bipartisan Infrastructure Law (BIL).

The Department of Energy announced this decision in October 2022, along with $2.8 billion in funding for various projects in the American battery sector. Energy Secretary Jennifer Granholm stated that this funding would “supercharge the private sector to ensure our clean energy future is American-made.”

However, shortly after the announcement, it became apparent that Microvast had ties to the Chinese Communist Party. According to Microvast’s own SEC filings, the Chinese government exerts substantial influence over the company’s business activities. The filing also revealed that most of Microvast’s current customers are in China.

Obama Commerce Department Official Appears in Filing

Another notable detail in the filing is the involvement of Stefan M. Selig, a former member of the board of Tuscan Holdings Corp. Selig served as Under Secretary of Commerce for International Trade at the U.S. Department of Commerce under the Obama administration. He was known for his support of the Trans-Pacific Partnership arrangement.

Pressure started mounting on Microvast when reports in December 2022 highlighted its close ties to China. Top lawmakers, including Sen. John Barrasso, expressed concerns about the company’s eligibility for DOE funding.

One major issue was Microvast’s non-compliance with the Holding Foreign Companies Accountable Act (HFCAA). This law aims to prevent companies that employ China-based auditors from obscuring their financial records from U.S. regulators. Microvast was listed by the SEC as a non-compliant company in May 2022.

Earlier this year, lawmakers questioned DOE deputy secretary David Turk about the funding destined for Microvast. Turk clarified that the company was only selected for negotiations and that no taxpayer funds had been allocated to them.

On May 22, the DOE announced that Microvast would not be receiving any funding. This decision came just a day before a House hearing investigating the flow of public money to companies with ties to the Chinese Communist Party.

During the hearing, Republican lawmakers expressed their concerns about the DOE’s vetting process for funding recipients. They questioned David Howell, principal deputy director of the DOE’s Office of Manufacturing and Energy Supply Chains, about the selection and vetting procedures.

It is clear that there are ongoing concerns about the allocation of taxpayer money to companies with ties to China. The Biden administration’s agencies, such as the DOE and EPA, have faced criticism for their handling of these issues and their lack of transparency in responding to congressional requests.