Microvast Holdings, a company that designs and manufactures lithium-ion batteries, secured an initial $12 million draw of a $25 million secured debt facility.
According to the company, fierce competition in the battery market has forced it to streamline its operations to ensure long-term sustainability, including workforce reductions and consolidations within its U.S. battery division. The funding will be used to provide working capital to continue operating in the U.S., which was provided by the Company’s founder, chairman, and chief executive officer, Yang Wu.
“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.” Yang Wu said.
Headquartered in Texas, the company provides a range of cell chemistries, including lithium titanate oxide (LTO), lithium iron phosphate (LFP), nickel manganese cobalt version 1 (NMC-1), and nickel manganese cobalt version 2 (NMC-2). By integrating the process from raw material to system assembly, the company has developed products catering to electric vehicles, energy storage, and battery components markets.
According to Mercom’s recently released Q1 2024 Funding and M&A report for Storage & Smart Grid. In Q1 2024, announced debt and public market financing in the Energy Storage sector totaled $10.5 billion in six deals, increased 855% YoY compared to Q1 2023, when $1.1 billion was raised in eight deals.
Verkor, a manufacturer of lithium-based battery cells and modules, recently secured over €1.3 billion (~$1.41 billion) in green financing supported by 16 commercial banks and three public banks. These funds will be directly allocated to the construction and financing of Verkor’s first gigafactory located in Dunkirk, France, with an initial production capacity of 16 GWh/year.
