Microvast Holdings, Inc. (NASDAQ: MVST) (“Microvast” or the
“Company”), a technology innovator that designs, develops, and
manufactures lithium-ion battery solutions, responded today to the
U.S. Department of Energy’s (DOE’s) recent decision to withdraw its
previously announced $200 million separator grant.
Yang Wu, Microvast’s founder, chairman, President, and Chief
Executive Officer, said “the Company is surprised by the DOE’s
decision to withdraw the grant, which was designed to help build a
new facility in Kentucky that would employ hundreds of people.
Microvast is based in Texas, its shares are traded on Nasdaq, and
the operations for our global business are centralized in the U.S.
Neither the Chinese government nor the Chinese Communist Party has
any ownership in the Company, nor do they control or influence
Company operations in any way. The Company is therefore considering
all of its options.”
In the meantime, the Company intends to continue to invest
significantly in its U.S. expansion, according to Mr. Wu, who is an
American citizen. “The withdrawal of the DOE grant will have no
impact on our expansion plans already underway for cell
manufacturing” he said. “We remain on track to increase the number
of employees we have in the U.S., and we re-affirm our commitment
to help the U.S. expand its battery supply chain and manufacturing
initiatives. The DOE decision does not alter our plans to
commercialize our polyaramid separator. We will continue to invest
in a pilot line that will add 10 million square meters of capacity
this year. Naturally, there will be some timing impact on bringing
the separator technology to market, given this decision came as a
surprise to us.”
“Our priority remains completing our battery manufacturing
facility in Clarksville, Tennessee. We are about half-way through
our over $300 million investment in the plant,” said Craig Webster,
Microvast’s Chief Financial Officer. “This facility is a key
business focus for us and will be a key contributor to our growth
in the coming years. The DOE decision does not impact our
previously provided financial guidance. Based on our backlog of
orders, we expect revenue in the U.S this year to be in excess of
$100 million. The decision also has no impact on our liquidity
position, and in fact, it gives us more flexibility on how we plan
to undertake our expansion initiatives in the U.S.”
Webster continued: “Our leading 53.5Ah battery cells and packs
are expected to be our primary revenue growth driver in the coming
years. Our separator technology was only anticipated to modestly
contribute to revenue starting in 2025.”
Microvast has battery facilities throughout the U.S. In 2021,
Microvast established a new research and development facility in
Florida, which will create more than 100 highly skilled jobs in the
area. The Company’s collaborations with research-driven
institutions, such University of Central Florida, continue.
In 2021, Microvast began construction of its 4GWh cell and
module facility in Clarksville, Tennessee. The Company continues to
anticipate the start of production there in this year’s fourth
quarter, creating hundreds of new jobs in Clarksville. Microvast
remains committed to hiring and actively recruiting American
veterans and their spouses as they transition out of the military
and is proud to have several American veterans on its leadership
team.
In 2022, Microvast established its new energy storage division
in Colorado along with a technology and testing center to support
the growth of utility-scale energy storage systems in the U.S. This
facility continues to serve as an economic engine, creating many
jobs.
“These core businesses have a positive impact on the economies
of Texas, Florida, Colorado and Tennessee, driving increased
employment and wages” Webster said.
Microvast had previously announced plans to build the world’s
first mass production facility in the U.S. for its polyaramid
separator. The $200 million DOE grant was part of a larger
investment of $504 million. This facility is slated to create 562
full-time jobs in Kentucky, while giving the U.S. the upper hand in
the production of a critical and unique technology.
About Microvast
Microvast is a technology innovator that designs, develops, and
manufactures lithium-ion battery solutions. Microvast is renowned
for its cutting-edge cell technology and its vertical integration
capabilities, which extend from core battery chemistry (cathode,
anode, electrolyte, and separator) to modules and packs. By
integrating the process from raw material to system assembly,
Microvast has developed a family of products covering a breadth of
market applications, including electric vehicles, energy storage,
and battery components. Microvast was founded in 2006 and is
headquartered in Houston, Texas.
For more information, please visit www.microvast.com or follow
us on LinkedIn or Twitter (@microvast).
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified
by words such as “will likely result,” “are expected to,” “will
continue,” “is anticipated,” “estimated,” “believe,” “intend,”
“plan,” “projection,” “outlook” or words of similar meaning. These
forward-looking statements include, but are not limited to,
statements regarding Microvast’s industry and market sizes, future
opportunities for Microvast and the combined company and
Microvast’s estimated future results. Such forward-looking
statements are based upon the current beliefs and expectations of
our management and are inherently subject to significant business,
economic, and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond our control.
Actual results and the timing of events may differ materially from
the results anticipated in these forward-looking statements.
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Investor Relations:
ir@microvast.com (346) 309-2562
Monica Gould monica@blueshirtgroup.com (212) 871-3927
Media:
Brooke Bentley Vice President, Marketing &
Communications brooke.bentley@microvast.com (970) 773-5806
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