Microvast Unveils New Next Generation LFP Based ME6 Energy Storage Solution

Business Wire 8-Aug-2024 9:00 AM

Microvast Holdings, Inc. (NASDAQ:MVST) ("Microvast", the "Company", "we" or "our"), a technology innovator in designing, developing, and manufacturing lithium-ion battery solutions, is thrilled to unveil its latest energy storage system (ESS), the compact, high energy density ME6 system and the latest product in our extensive battery solutions portfolio, the 565Ah lithium iron phosphate (LFP) battery. Today, the Company announces its commitment to LFP batteries as the cornerstone of its next generation ESS offerings. Unlike our ultra-high-performance nickel manganese cobalt (NMC) batteries which are produced to meet the demands of our commercial vehicle (CV) customers, our new 565Ah LFP batteries are specifically tailored to the unique demands of ESS customers, providing superior long-term performance, cost-efficiency, and reliability.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240807336192/en/

New Microvast ME6 Energy Storage Container (Photo: Business Wire)

"Energy storage is essential for carbon reduction and accelerating the global transition to clean energy. Our ME6 energy storage solution can be used for any application where electric energy supply is needed," said Yang Wu, CEO of Microvast. "We are excited to introduce this efficient solution and look forward to advancing the industry together with partners in the U.S and worldwide."

With this announcement, Microvast is also shifting its long-term U.S. ESS market focus to producing LFP battery systems instead of its NMC battery solutions at its Clarksville, Tennessee facility. We continue to consolidate our operations across the U.S. to Clarksville, including our ESS operations. Our ESS products, previously assembled in Colorado, are now planned to be assembled at our facility in Clarksville. This move is anticipated to enhance operational efficiencies and speed of deliveries for our U.S. business.

ME6 Energy Storage System: Built to Last, Power When You Need It

Our new LFP-based ME6 energy storage solution offers a compelling combination of benefits, including:

• Extra Long Life: Exceptional cycle life exceeding 10,000 cycles, up to 30-year lifespan with Microvast's new overhaulable battery design.
• Compact Storage: Boasts a high energy density offering of 6 MWh in a compact 21-foot container, allowing customers to optimize their construction and site layouts.
• Top-Tier Reliability: IP55, C4, and nitrogen protection to prevent fires and resist corrosion for reliable year-round outdoor operation.
• High Efficiency: Container includes an integrated modular cooling system, which extends the battery life and enhances round-trip efficiency.
• Reduced TCO: Optimized total cost of ownership with a robust design and ability to continually maintain and overhaul product.

LFP Batteries: The Ideal Solution for Energy Storage Systems

The newest product line in our extensive battery portfolio, the 565Ah LFP cell provides a host of specifications designed to meet the needs of renewable energy customers:

• Lower Cost: LFP batteries are significantly less expensive than NMC batteries, resulting in savings for ESS customers.
• Enhanced Reliability: LFP batteries are inherently more reliable with superior thermal stability, reducing the risk of fire or explosion.
• Longer Lifespan: Specially designed LFP batteries provide a longer cycle life for ESS applications, ensuring reliable and durable performance over time.
• Environmental Friendliness: LFP batteries do not contain cobalt, making them a more sustainable choice for scaled renewable energy operations.
• Tax Credits: Our domestically produced LFP batteries are expected to qualify for IRA Section 45X, further enhancing their economic attractiveness for Microvast and our customers.

Our new LFP battery technology will enhance Microvast' s ability to deliver ESS solutions that are not only cost-effective but also reliable and environmentally responsible.

"ME6, the latest generation of our energy storage solutions, is engineered for enhanced efficiency," said Dr. Wenjuan Mattis, Chief Technology Officer of Microvast. "Utilizing our high-performance LFP cells, we have developed a ME6 container that boosts capacity and stability while providing an exceptional lifespan of up to 30 years and supporting more than 10,000 cycles. Our pioneering nitrogen protection technology helps prevent fires and combat corrosion, and when combined with our sturdy IP55 and C4 designs, can greatly improve both the reliability and longevity of our systems. Moreover, our integrated modular liquid cooling system helps ensure consistent battery temperatures, optimizing performance through active cell balancing and enhancing round-trip efficiency while reducing heat loss. These cutting-edge features will help Microvast deliver the reliability and performance required to meet the rigorous demands of today's energy storage market."

About Microvast

Microvast is a global leader in providing battery technologies for electric vehicles and energy storage solutions. With a legacy of over 17 years, Microvast has consistently delivered cutting-edge battery systems that empower a cleaner and more sustainable future. The Company's innovative approach and dedication to excellence have positioned it as a trusted partner for customers around the world. Microvast was founded in 2006 and is headquartered in Stafford, 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807336192/en/