China: CITIC Securities leads $400m round in Microvast’s MPS

Visual from Microvast's Facebook page.

Shenzhen-based CITIC Securities has led a $400 million funding round in Microvast Power System, a subsidiary of US-based lithium-ion battery systems company Microvast.

CDH Investments, National Venture Capital, and other investors also joined in the round.

Microvast Inc CEO Yang Wu said that MPS was founded to provide power solutions for electric vehicles. It established fast charging, long-life, and non-flammable as Microvast’s battery R&D goal back in 2008.

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Yang said that the latest investments will be used for continued research and development, as well as scaling production capacity. They also plan to implement Microvast’s Clean City Transit strategy in China, EU, North America, and Asia Pacific area.

“Our products are now widely used in the public transport sector, will gradually be implemented in electric taxis, and eventually in electric cars,” he added.

The director for the latest investment from CITIC Securities said that the “fast charging” approach is becoming an industry trend and Microvast is committed to a high level of investment in R&D to maintain its advantage in advanced battery technologies.

“The company is also accelerating the commercialization of those technologies, which makes us very confident in its potential,” the director said in the statement.

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MPS is a vertically integrated developer and manufacturer of advanced Electric Vehicle Power System solutions, based on the company’s fast charging, long-life, and non-flammable Li-ion battery systems. It has been operating battery systems in more than 15,000 electric and hybrid-electric vehicles in over 140 cities.

MPS’s parent firm Microvast has headquarters in Stafford, Texas, and Zhejiang in China, and other offices in the UK and Germany.

In March, MPS began construction on its Phase III production facility in Huzhou, Zhejiang, China. The plant’s targeted production capacity is 11 GWh in Phase III and the total production capacity will reach 15 GWh, and will be operational by 2019.

MPS plans to launch its next generation products with higher energy density this year.

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