Microvast Holdings (NASDAQ:MVST) popped in afternoon trading on Wednesday after one its wholly-owned subsidiaries was selected by the U.S. Department of Energy in collaboration with General Motors (GM) to receive a $200M grant.
The grant was noted to be part of the first set of projects funded by President Biden’s Bipartisan Infrastructure Law. Over 200 companies applied for $2.8B in DOE grant funding and 20 companies were awarded grants.
“This grant will enable Microvast to accelerate its plans to onshore critical battery component manufacturing processes, including mass production of our patented polyaramid separator technology,” noted Microvast CTO Dr. Wenjuan Mattis.
The $200M DOE grant and more than $300M in investment from the companies is expected to support the construction of a new separator manufacturing facility in the U.S. Microvast (MVST) expects the new separator facility to supply battery components to its existing battery cell manufacturing facility in Clarksville, Tennessee, as well as other customers across the commercial, specialty and passenger electric vehicle markets, energy storage systems and other applications.
Shares of MVST were up 6.75% at 3:20 p.m. and hit a 14-week high during the session.
Read More: Microvast rallies after landing Department of Energy grant