The Department of Energy’s recent decision to withdraw a grant for an energy technology firm has sparked outrage among Republicans and raised questions about the government’s role in the markets. Sen. John Barrasso, a prominent Republican on the Energy and Natural Resources Committee, is demanding answers from Energy Secretary Jennifer Granholm.
The withdrawal of the $200 million grant awarded to Microvast, an electric vehicle battery component firm, resulted in significant market fluctuations. After the grant was announced, the company’s stock price skyrocketed by over 40%, only to plummet by 36% when the grant was withdrawn.
Sen. Barrasso finds it concerning that the federal government played such a significant role in a single company’s stock price. He believes that the Department, fueled by funds from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, has created massive market fluctuations through government misinformation.
As Congress seeks information on the Department’s award negotiations and processes, Sen. Barrasso expects full cooperation. He aims to hold the Department accountable and provide clarity on the criteria used to announce and cancel grants.
Transparency and accountability in the Department’s award processes are essential. The lack of clarity surrounding these processes has caused confusion and uncertainty among investors, particularly those who trusted Microvast. It is crucial for American taxpayers to understand how the Department makes these decisions.
Sen. Barrasso emphasized the impact of deceptive press releases by the White House and the Department of Energy on Microvast investors. The influence of these releases can be seen in the online message board posts of apparent Microvast investors.
Concerns were also raised about Microvast’s ties to China, as 69% of its revenue is generated in China, with only 3% coming from the United States. The company acknowledged that the Chinese government holds substantial influence over its business activities.
It is vital to scrutinize the Department of Energy’s actions regarding grants and their potential impact on the markets. Transparency, accountability, and clarity are necessary to avoid confusion and uncertainty among investors.
Sen. Barrasso and his Republican colleagues will continue to demand answers and work towards holding the Department accountable. This incident serves as a reminder of the far-reaching consequences of government actions, and elected officials must prioritize protecting the interests of the American people.
Source Fox News