Microvast Holdings, a technology innovator specializing in lithium-ion battery solutions, has announced that it will not proceed with its plan to build a factory in Hopkinsville, Kentucky, at least for now.
The company had been working diligently to establish a polyaramid separator manufacturing plant in Hopkinsville, with the aim of expanding its operations, creating local jobs, and contributing to the growth of the community. Microvast’s proprietary polyaramid separator is a crucial technology that significantly improves the safety of lithium-ion batteries. However, due to recent developments, the company has reassessed the viability of proceeding with the separator project. Craig Webster, the company’s Chief Financial Officer, stated, “Our commitment to build the world’s first mass polyaramid separator production facility in the US remains unchanged. But given market conditions, including interest rates doubling in the last year, we have decided to not move forward with our construction plans for the plant and will focus on our core business for now.”
The decision not to pursue the construction of the manufacturing plant in Kentucky at this time is disappointing for Microvast, its employees, and the state of Kentucky. The company acknowledges the impact this news may have on its workforce, suppliers, and the local community. Webster expressed gratitude to Kentucky for the support received and expressed a desire for future partnerships.
Despite this setback, Microvast remains committed to expanding the supply chain for advanced batteries in its facilities across the United States. The company is concentrating on its core business efforts, including completing its first large-scale battery cell, module, and pack production plant in Clarksville, Tennessee. This project will ensure that Microvast’s products are manufactured in America.
The decision to pause the building of the separator plant will provide the company with the flexibility to focus on its operations in Tennessee and succeed in manufacturing its 535Ah battery cells, modules, and packs in the United States. Webster stated, “Our leading 535Ah battery is expected to be our primary revenue growth driver in the coming years.”
Microvast has been praised for its professionalism and transparency throughout the site selection process by Jeff Noel, Secretary of the Kentucky Cabinet for Economic Development. He expressed understanding of the company’s decision to delay construction in Hopkinsville and looks forward to re-engaging with its leadership in the future.
Microvast began construction of its 4GWh cell and module facility in Clarksville in 2021, with production expected to start in the fourth quarter of this year. The facility will create hundreds of new jobs in Tennessee. Additionally, Microvast has established a new Energy division in 2022 with a development and testing facility in Colorado, supporting the growth of utility-scale energy storage systems in the US and creating many jobs in the region.
Overall, while the decision not to proceed with the factory in Hopkinsville is disappointing, Microvast remains committed to its core business and expanding its operations in Tennessee and other locations across the United States. The company’s focus on manufacturing advanced battery solutions domestically will contribute to the growth of the American economy and create job opportunities for local communities.
