ENERGY STORAGE

Microvast completes $12m debt facility draw after cutting workforce

June 6, 2024

Lithium-ion battery system manufacturer Microvast Holdings has completed the initial $12 million draw of a $25 million secured debt facility following a period of upheaval in which the company was forced to cut the size of its workforce amidst challenging market conditions.

The debt facility is provided by Yang Wu, its founder, chairman and CEO. The draw will primarily provide working capital to continue the company’s US operations.

A Microvast statement said: “The past year has demanded tough decisions, and the global battery market is fiercely competitive. Recently, following a period of difficult choices, we have worked to streamline our operations to ensure long-term sustainability, including workforce reductions and consolidations within our US battery division. However, we remain firmly committed to our US presence and believe in the incredible potential of American innovation in this critical sector.”

Wu commented: “We would like to thank our customers who continue to support us through challenging times. We are firmly focused on the future and execution of our mission, and Microvast continues to demonstrate to our global client base and key partners that we are on a path to restore this great Company to industry leadership.”

 

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