Kentucky pauses incentives for battery maker whose federal loan was nixed after claims of China ties

By JONATHAN MATTISE
Associated Press

NASHVILLE, Tenn. (AP) — 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. The loan rejection for Texas-based Microvast came after some congressional Republicans argued the firm has improper ties to China. Yang Wu, Microvast’s founder and CEO, says the company was surprised by the Energy Department’s decision against awarding the loan for a Kentucky facility focused on a new technology for batteries. Wu says neither the Chinese government nor the Chinese Communist Party has any ownership, control or influence in the company. It’s unclear if the company will proceed with plans to build in Kentucky.