While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: - PS1: Social and Environmental Assessment and Management System - PS2: Labor and Working Conditions - PS3: Pollution Prevention and Abatement; and - PS5: Land Acquisition and Involuntary Resettlement Issues associated with the following Performance Standards were not encountered during the assessment of the project: PS4: No evidence of adverse impact to Community Health Safety and Security were observed from Microvast's operations which are located in a large industrial estate. PS6: No negative impact to biodiversity or conservation from the Company’s operations (as confirmed by approved environmental impact assessment completed by the Company). PS7: No Indigenous People are known to have been in the area or affected by the project; PS8: No evidence of the presence or impact to issues associated with Cultural Heritage. Because the proposed investment will be used to support future, but as yet, undefined projects (such as electric vehicles or other businesses that can potentially use rechargeable batteries), in addition to existing projects, the principal Performance Standards to be applied to this investment are those listed above. A condition of IFC’s investment going forward will be that the Company shall adopt IFC environmental and social Performance Standards as part of applicable requirements in its management system, and shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8 for its existing operations as well as while assessing any new business opportunities or service models.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included: environmental and social management system (scope and implementation); quality and sustainability of water resources; emissions to the environment – air, water and subsurface; solid, and hazardous waste and materials management, including transportation; life and fire safety; community and occupational health and safety; energy use and efficiency; community engagement; and land acquisition. Microvast has an actively engaged management program and has presented specific plans to address key issues and gaps to ensure continued compliance with local regulatory requirements as well as consistency with IFC Performance Standards and applicable Word Bank Group (WBG) Environmental, Health and Safety guidelines.

Microvast has provided information on its current practices and policies that address E&S risks and impacts to ensure that the proposed project complies with or, will upon implementation of specific additional agreed measures, comply with host country laws and regulations and the IFC Performance Standards and applicable requirements of environmental, health and safety guidelines. Environmental, social and health and safety issues that require ameliorative measures will be addressed by Microvast as part of IFC’s investment agreements. Social and Environmental Assessment and Management Systems: Microvast has an ISO 9001 certified ‘Functional Matrix’ quality assurance management system which has elements that provide oversight of environmental, health and safety (EHS) functions. Microvast’s management program includes operational policies and procedures that are implemented at the facilities level by supervisors who report to management of the Company and the CEO on these matters. Policies and procedures comply with applicable regulatory requirements for operation of these facilities. The management system includes effective training, documentation of monitoring results, mechanisms for correcting problems and investigating accidents or non compliance, and ensuring that appropriate adjustments to procedures are made to prevent reoccurrence. Human resources are managed at the corporate level with oversight of facilities and operations. Training of staff is done on a routine basis in compliance with local workplace regulations. The department of human resources is responsible to ensure that all employees are adequately trained to perform their work safely. Supervisors monitor that standards are met and any reportable incidents are recorded, and follow up action taken when required. Training, monitoring and reporting framework is documented and consistent with Chinese requirements, and good international industry practice. Labor and Working Conditions: Microvast employs about 630 people as full time staff in its three facilities in Huzhou, China. Labor practices and working conditions, including occupational health and safety, comply with local regulatory requirements and are largely consistent with IFC policies and applicable WBG EHS guidelines for the sector. Microvast has a Human Resources policy that is consistent with local and national regulatory requirements. The policy is included in employment contracts, and addresses working conditions, terms of employment, and wages and benefits. This information is provided in the form of an employee handbook at the time of induction. Employment relationships recognize the principals of non-discrimination and equal opportunity. Although the work force at Microvast is not unionized, employees have the right to freedom of association and have the opportunity to represent to the management any issues or grievances that they may have. Any employee who dissents or has doubts about any company policy or has complaints against the company management has the opportunity to have the problem resolved either directly by communicating with the line manager, emailing to or delivering letters to the company suggestion box, or indirectly reporting to the human resources department through worker representatives. The minimum employment age at Microvast is 18 years. Microvast ensures that child labor or forced labor is not employed directly or by subcontractors through verification of relevant documents. Subcontractors are expected to comply with all local labor requirements specified in contractual arrangements. For its manufacturing operations, employees work on 8-hour shifts, five days a week. Wages are paid on a monthly basis and calculated based on hours worked, inclusive of overtime. The Company applies three different types of working hour systems: Ordinary, Combined (mainly applied to production line) and Flexible (applied to management team, market & sales department, pack development department and drivers etc.).The application of both working hours systems (Combined and Flexible) complies with national laws, and is approved and verified by the Huzhou Municipal Bureau of Labor and Social Insurance. Occupational health and safety at Microvast facilities are managed by designated health and safety staff. Facilities are audited twice a year by regulatory agencies to monitor compliance with labor regulations. There is a plan for accident prevention and worker safety consistent with local regulatory requirements. All employees in the company have to undergo a full training program at induction and subsequently regarding worker health and safety relevant to their job activity. The Company has an Occupational Health Examination and Diagnosis and Treatment Policy. New employees are required to have a health examination before induction, and all the employees of the Company have annual health examinations during the course of their employment. Health examinations are done at the Huzhou Disease Control and Prevention Center. Company statistics show that there was no lost time accident or occupational disease in the last three years of its operations. Microvast also regularly monitors its workplace air quality against relevant standards for exposure to industrial chemicals and vapor. Workplace air quality and noise is monitored annually and is within acceptable limits. Facilities and associated infrastructure are largely well maintained. Fire drills and emergency procedures drills are routinely held at the manufacturing facilities. As part of continual improvement, the Company will review its emergency and safety signage, handling of hazardous materials including corrosives and gases, and effectiveness of internal training and emergency response. The OHS performance of Microvast is in compliance with regulatory requirements, consistent with requirements of IFC PS2 on Labor and Working Conditions. Pollution Prevention and Abatement: Effluents from Microvast facilities are primarily from OChem’s chemical manufacturing operations, utilities blow down and sanitary wastewater. All effluents are discharged directly to the public sewer system. Effluent collected through the public sewer/collection system is treated in municipal wastewater treatment plant (secondary treatment) before discharge to surface water. Discharge of process effluent is in compliance with discharge permits issued by the regulatory agency. Storm water discharge is not regulated by local regulatory agencies and is presently disposed to the environment without treatment. Air emissions from Microvast facilities primarily include emissions from process operations which may include VOCs, heavy metals and miscellaneous vapors. Air emissions are in compliance with local regulations. Microvast will review air emissions from its facilities for compliance with applicable IFC requirements and implement remedial action if necessary. Management of solid and hazardous materials, wastes and residuals at Microvast’s facilities complies with local regulatory requirements. Licensed subcontractors are used for the collection and disposal of solid and hazardous materials. Microvast procurement procedures contractually require that its suppliers and subcontractors comply with applicable regulatory requirements and Microvast's policies. As a process of continuous improvement in its performance, Microvast will review its solid and hazardous materials and waste management practices (training, handling, transportation and storage) at its operations for consistency with applicable IFC requirements, especially with respect to explosive chemicals stored on site at its OChem facility. Water consumption at Microvast is estimated to be about 61,000 cubic meters annually, which includes water used for process, non-contact cooling and sanitary usage. Water obtained from the public supply of the Huzhou municipality. Microvast consumes about 250,000 kWh of electric energy annually, all of which is obtained from the public service grid. No other fuels are used at Microvast in any significant quantity. Net green house gas (GHG) emissions attributable to Microvast’s annual consumption of electricity, is estimated to be about 200 metric tons of carbon dioxide equivalents per year. Land Acquisition and Involuntary Resettlement: IFC’s assessment considered the potential displacement and compensation of occupants and users of land acquired for two Microvast facilities which are located within the Huzhou Economic Development Zone located in Huzhou Municipal City, Zhejiang Province, China. The third facility is rented from another company. Beginning in 2003, the local Government set up the industrial park by acquiring land from village collectives or individual villagers with compensation made to them. This was done in consultation with potentially affected communities and in compliance with procedures established by the Land Administration Law of the People's Republic of China (LAL), and using the Huzhou City Government Directive 2003[13] as a basis, which details compensation standards and provisions. Specifically, Mircovast obtained land use rights for 77 mu and 71 mu plots from the local government in 2006 then 2009, which originally belonged to individual villagers from Qi Li Ting village and Jiu Jiu Qiao village, who gave up these land use rights to the local Government in 2003 for the purpose of setting up the industrial park. Land acquisition for the project physically displaced 45 persons from the two villages, and economically displaced another 80 persons. Land related compensation was made to affected villagers according to the RMB 40,000/mu standard established in the Huzhou Directive 2003 [13]. In addition, affected persons who lost their housing structures were paid compensation of RMB 450 per square meter, or have been provided replacement housing. Compensation levels are considered equal or superior to prevailing market values, and the Company confirmed that all compensation payments have reached intended recipients. The local government has established vocational training and other support programs to help displaced villagers restore their livelihoods. Almost all displaced persons are now reported to be gainfully employed or self-employed as small business owners, with a current average gross yearly income of RMB 20,000 per person compared to the pre-land-acquisition agricultural-based income of about RMB 10,000 per person per year. Based on the above information, IFC concludes that the reported outcomes of the land acquisition undertaken by the municipal government are consistent with the objectives and requirements of IFC’s Performance Standard 5 for Land Acquisition and Involuntary Resettlement.

No local communities have been significantly affected by Microvast’s ongoing operations which are in an industrial park and away from any residential communities. The Company has not been the subject of any public complaints or litigation related to its environmental or social performance. In China, dialogue and communication with affected communities including public consultation and disclosure of environmental and social impact assessment occurs through procedures established by PRC regulations. As a result, no formal information dissemination activities have been undertaken by the Company so far. Notwithstanding, as part of its environmental and social management program, Microvast will establish methods for communicating environmental and social aspects to external interested parties and maintain procedures for receiving, documenting and responding to concerns from any external interested parties relating to the project. Specific procedures will be developed to incorporate community engagement, including clear procedure on disclosure and consultation with potentially affected communities. For more information see the company’s website at http:// www.microvast.com or contact: Jack Xiao Chief Operating Officer 2198, Hongfeng Road Huzhou, Zhejiang, P.R.China, 313000 Telephone: +86 572 2756888 Fax: +86-572 2756889

A Chinese-language copy of the Environmental and Social Review Summary (ESRS) and associated Environmental and Social Action Plan (ESAP) will be posted on the Company’s web site (http:// www.microvast.com) and made available at the main entrance of the facility listed below. An announcement informing the public of its availability for review and comment will also be placed in a local newspaper. Microvast Inc. 2198, Hongfeng Road Huzhou, Zhejiang, P.R.China, 313000 Telephone: +86 572-2756888