Senator Demands Answers on Whether Biden’s Announcement of $3 Billion Green Energy Grants Misled Investors

Stock prices for grantees rose after the announcement was made before the election. Biden later stated that they were not final.

Just before the midterm elections, the Biden Administration announced almost $3 billion in federal grants for a group energy companies. Democratic senators cheered and stock prices rose: Microvast Holdings shares, one of the selected companies, shot up 40%

Now, one Republican senator is charging that the Biden administration misled investors because, in fact, those grants weren’t a done deal—they were held up, it appears, after the Washington Free Beacon reported That the Chinese government “exerts substantial influence” over Microvast.

Sen. John Barrasso  (R., Wyo.Senator John Barrasso (R., Wyo.), who is the Senate Energy Committee’s lead Republican, stated in a Let me know This week’s letter to the Department of Energy stated that the failure of the administration to exercise due diligence does not excuse the dissemination of false financial information to shareholders.

After the election, Congress began to scrutinize Microvast Holdings. Free Beacon reported The financial disclosure report of the company indicated that the Chinese government was included in the financial statements. “exerts substantial influence over the manner in which we must conduct our business activities and may intervene, at any time and with no notice.” Republicans have warned that President Joe Biden’s aggressive green-energy push could benefit China. China holds a dominant position in the global solar and electric vehicle battery industries.

These concerns led David Turk (Deputy Energy Secretary) to tell a Senate panel earlier in the month that the administration is currently conducting an investigation “a due diligence process” That of the grantees “no taxpayer funding is going to any of these companies yet.” Bloomberg reports that the department also sent letters to concerned lawmakers stating that the grants were being reviewed. reported Last week.

However, these statements contradict statements made by DOE in the past that indicated grants were final. DOE issued a Press release It listed 20 companies in October “will receive a combined $2.8 billion” In energy grants “expand domestic manufacturing” Biden’s infrastructure law. It resulted in a significant rise in share prices for publicly traded companies named DOE.

Microvast received a grant of $200 million to create a battery separator plant. Its share price soared 40 percent within hours after the DOE announcement. According Bloomberg. Its shares dropped 13 percent following the revelation that the grants had been canceled.

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