Microvast is a private firm founded by Mr. Wu Yang, a serial entrepreneur with over 20 years of business experience in technology development. The Company’s other shareholders are in the management and research team.

The total project cost is approximately $120 million and consists of capital expenditures related to expansion, marketing and sales, and the continued R&D of new battery technologies. IFC will co-invest on the same terms with another international investor. IFC is expected to invest approximately $30 million in the form of equity and quasi-equity.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

The Company is a US based holding company registered in Texas with its fully owned three subsidiaries located in Huzhou, China. Microvast operates a facility of around 50,000 sq ft in Huzhou and is setting up additional manufacturing facilities of 400,000 square feet in Huzhou to accommodate the proposed expansion.

IFC’s expected development impact from a potential investment in Microvast includes: Helping China address climate change challenges by financing a company that manufactures energy and cost efficient battery technology; The success of this Project is expected to accelerate the development of the electric vehicle industry in China. The Project will also assist the government of China to promote the replacement of buses powered by traditional fuel with hybrid or electric buses, thus decreasing the overall carbon emissions and improving cost efficiency over time; Replacing thousands of buses running on traditional fuel per year with electric batteries could save up to millions of kilograms of CO2; and Enabling product transfer to other developing regions, such as Southeast and Central Asia

Long term financial partner: Microvast will benefit from IFC’s longer tenor and flexibility in structuring investment products. Attract additional investment: IFC’s funding is expected to provide confidence that will attract other international equity investors and banks to the Company in the next expansion phases. Environmental and social standards: IFC’s partnership can help the Company to achieve higher levels of social and environmental best practices. Corporate governance: IFC can assist Microvast in instituting best corporate governance practices. Knowledge transfer: IFC will assist the Company to further develop its technology and products to further drive down cost so that they can be adopted in other developing regions of the world and new markets that are facing similar growth in demands and constraints of urban transport, especially the bus sector. Demonstration effect: IFC can support the Company in demonstrating to other vehicle manufacturers in China that building mass transportation vehicles powered by batteries is feasible.

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 environmental, health and safety guidelines.