Microvast (NASDAQ:MVST) shares fell 22.7% in pre-open Tuesday after the lithium battery company was told by the U.S. Energy Department that it won’t get a $200 million grant, Reuters reports.
Authorities reportedly told Microvast that it failed to receive a grant due to its alleged links to China's government. Two sides were locked in talks for Microvast to build a plant in Tennessee.
The Energy Department explored the idea of awarding Microvast $200M in financial incentives under the $1 trillion 2021 bipartisan infrastructure law.
Representative Frank Lucas, a Republican, said the news was "a win for taxpayers and American businesses."
"These funds are intended to strengthen America’s battery production and supply chain, not to tighten China’s stranglehold on these supplies," he said in a statement.
Shares were up 43.8% through Monday’s close.