Energy Department Cancels $200 Million Grant to Microvast

The Biden administration cancelled plans to award $200 million to lithium-ion battery maker Microvast Holdings Inc. amid criticism over the company’s ties to China, the Energy Department said Monday

The funding had been earmarked by the Energy Department as part of a broader $2.8 billion award designated to 20 companies from the bipartisan infrastructure legislation signed into law in 2021 but came under scrutiny from both Democrats and Republicans.

The Energy Department had said in February that the award, initially announced in October, was undergoing a “post-selection risk-based, due-diligence review,” after lawmakers questions the company’s links to China.

“As responsible ...