Shares of battery company Microvast Holdings Inc MVST are trading lower Tuesday following reports the U.S. Energy Department ended contract negotiations.
What Happened: The U.S. Department of Energy (DOE) reportedly canceled contract negotiations for another potential $200 million award for Microvast, according to Reuters, citing a source familiar with the matter.
In late 2022, Microvast and General Motors Co GM received a $200 million grant from the DOE to support construction of a new separator manufacturing facility in the United States.
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Microvast shares have rallied this month on the back of the company's better-than-expected quarterly results. The lithium battery maker also raised its full-year 2023 guidance.
Microvast ended the quarter with $285.8 million in cash, equivalents and short-term investments, and also had a backlog of $486.7 million.
MVST Price Action: Microvast shares were down 21.4% at $1.73 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Microvast.
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