Microvast Holdings, Inc. (MVST) Business

ITEM 1. BUSINESS

Business Overview

Founded in 2006 and headquartered in Stafford, Texas, Microvast Holdings, Inc. (NASDAQ: MVST) is a global leader in advanced specialized battery technologies. Since our public listing in 2021, we have focused on delivering high-performance lithium-ion battery solutions for the next generation of commercial and industrial electrification. We specialize in the design, development, and manufacturing of battery components and systems primarily for electric commercial vehicles and energy storage systems (“ESS”). Our guiding principle is to innovate lithium-ion battery designs from the ground up without relying on legacy technologies. We believe that this approach allows us to create purpose-built solutions for new markets, rather than repurposing existing ones.

Our mission is to become a leader in U.S. domestic battery production, reducing reliance on overseas suppliers, and strengthening national energy independence. We believe that this mission, along with our engineering expertise, vertically integrated business model, and our focus on continuous investment in our research and development and operations, differentiates us from competitors and positions us for long-term revenue and income growth.

We employ a vertically integrated approach, which we believe provides a competitive advantage in optimizing performance and cost. Our proprietary technology stack spans the entire battery system, including core cell materials (cathode, anode, electrolyte, and separator), cells, modules, packs, thermal management systems, and intelligent battery management systems. This end-to-end expertise has driven critical advancements in ultra-fast charging, high energy density, long cycle life, and safety, all critical factors for commercial transportation and ESS applications. With significant in-house capabilities in design, testing, and R&D, we continue to build an industry-leading body of knowledge in battery chemistry and performance.

Our Strategy

Our objective is to drive long-term stakeholder value by scaling our proprietary battery technologies across high-growth sectors. Since 2008, our research and development efforts have been dedicated to pioneering cutting-edge battery technologies that offer ultra-fast charging, extended cycle life, high energy density, and enhanced safety. Our commitment to innovation has well positioned us developing the next-generation lithium-ion batteries. We are focused on designing battery technologies for electric commercial vehicles and ESS. Our solutions empower industries to transition to cleaner, more efficient power sources, unlocking new levels of performance, longevity, and cost efficiency. Historically, demand for electric commercial vehicle batteries was concentrated in the Asia & Pacific regions. We are now working towards a balanced global strategy throughout EMEA and North America. As customer demand for our products and services has grown in Europe and the U.S., we have expanded to meet these growth opportunities. We continue to invest in our operations in Asia-Pacific to capitalize on regional growth. This provides a balanced global strategy while maintaining strong partnerships with OEMs in high-demand markets. We have primarily supplied our battery solutions to OEMs for use in electric commercial and specialty vehicles. We are continuously advancing our battery technologies to improve performance, efficiency, and reliability in commercial applications.

We believe the energy storage industry is positioned for continued expansion. In 2025, third-party industry data shows that global power capacity grew by approximately 90 gigawatts, an estimated 23% increase from the previous year. Industry projections indicate expected further expansion, with an average CAGR in deployed gigawatts of 23% between 2025 and 2035. The U.S. and China are expected to lead this growth, with U.S. power capacity projected to increase from approximately 45 gigawatts in 2025 to approximately 125 gigawatts by 2030. By refining our technology, we aim to advance our ESS solutions to meet the evolving demand of power sector and complement existing resources in meeting growing global demand for reliable and flexible power. We are leveraging many of the component-level technologies from our commercial vehicle segment to develop our energy storage products.

Our Products and Services

We believe the commercial vehicle market represents a continued growth opportunity. Our technology is currently deployed across a wide variety of platforms, including buses, heavy-duty trucks, port equipment, and heavy mining equipment. We have supported the deployment of the IVECO eDaily and various bus platforms (Citybus, Intercity, and Crossway). We also maintain active collaborations with leading OEMs including BAIC Truck, Higer Bus, and JBM Electric Vehicles. In the port and mining sectors, we have supplied Kalmar Corp., XCMG, and LGMG.

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In November 5, 2025 we announced a partnership with Škoda Group to develop “Made in Europe” battery systems. The current solution under development utilizes Microvast's 37Ah LTO cell platform. This platform provides an energy density of approximately 95 Wh/kg at the cell level and is designed for high-rate charge and discharge capability. Under defined test conditions, the cell platform has demonstrated cycle life durability exceeding 20,000 cycles with approximately 80% capacity retention. The LTO chemistry is recognized for its rapid charge acceptance, long cycle life characteristics, and strong thermal stability, making it suitable for heavy-duty and high-cycle rail applications. The first prototype vehicles integrating the jointly developed battery electric multiple units are expected to be completed by the end of 2026 and are anticipated to be deployed starting in 2027.

We provide service and repairs to our customers, including under warranty where applicable. We generally provide manufacturer's limited warranties with our products and offer certain extended limited warranties that are available at the time of product purchase.

Battery Solutions for Electric Commercial Vehicles

We design, develop, and manufacture high-performance battery solutions for light, medium, and heavy-duty trucks, buses, trains, mining trucks, marine and port vehicles, automated guided vehicles, and specialty vehicles. Our advanced lithium-ion battery systems integrate ultra-fast charging, high energy density, improved cycle life, and industry-exceeding safety standards.

Our battery technology can achieve rapid charging from 10% to 80% in just 10 to 30 minutes under suitable conditions, significantly reducing vehicle downtime. This ultra-fast charging capability is critical for industries requiring continuous fleet operation, such as logistics, ports, warehouses, and mass transit systems, where substantial downtime is not an option.

Microvast batteries are engineered to align with the operational lifespan of commercial vehicles. They are designed for high durability and longevity, with performance validated for extended service life in the field. Our advanced cell chemistry and proprietary thermal management system can allow for a longer product lifespan than many other competing products.

The extended cycle life of Microvast battery solutions, as compared to our competitors, can translate into lower long-term costs for fleet operators, reducing the frequency of battery replacements and minimizing total system expenditures. This advantage can be particularly significant in applications where high energy throughput and continuous operation are required, such as public transportation, heavy-duty trucking, and port electrification.

For commercial EV customers, total cost of ownership (“TCO”) is an important criterion. To remain competitive, Microvast is committed to:

•Investing in R&D to continuously improve battery technology and lower costs.

•Developing new battery cells and modules with higher energy densities to enhance efficiency.

•Integrating advanced materials and next-generation designs to optimize performance, durability, and cost-effectiveness.

•Strengthening our focus on material innovation, so that improvements in base components translate to benefits across all battery solutions.

Fleet operators prioritize total cost of ownership metrics when evaluating battery solutions as an alternative to internal combustion engines (“ICE”). Our combination of ultra-fast charging, extended cycle life, and high energy density can provide a significant TCO advantage compared to traditional batteries.

By reducing charging downtime, replacement cycles, and overall maintenance costs, Microvast batteries can enable fleet operators to achieve a lower cost per mile compared to both ICE vehicles and traditional lithium-ion battery solutions. This operational advantage positions Microvast battery systems as a strategic long-term investment for commercial fleets transitioning to electrification.

We internally develop our own BMS technology to control, design, optimize battery performance, improve safety, and enhance longevity. The latest BMS 5.0 platform meets ISO 26262 functional safety and ISO 21434 cybersecurity standards, integrating digital twin technology to better optimize the batteries for real-time monitoring and predictive diagnostics.

Our BMS technology enhances operational efficiency by:

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•Optimizing battery performance through advanced cell balancing algorithms

•Identifying and addressing safety risks, including thermal runaway detection and mitigation

•Providing predictive analytics to extend battery cycle life and minimize unplanned downtime

Energy Storage Systems

We believe energy storage is now a critical component of grid infrastructure. This demand is accelerated by rising electricity consumption from AI, high-performance computing, and data center expansion. To meet this need, we are leveraging our core advancements in performance and reliability to provide capacity support and grid resiliency. We believe the market is positioned for meaningful expansion over the next decade. Governmental policies, subsidies, and incentives in certain countries are further supporting the development and deployment of energy storage solutions.

Battery Components

As a vertically integrated battery company, Microvast develops and owns proprietary intellectual property and know-how relating to the design, development, and manufacture of the four critical components of lithium-ion batteries: cathode, anode, electrolyte, and separator. This vertical integration allows us to use these components in our products and market the individual components to other manufacturers.

Our Technologies

Our latest innovations in cathode and separator technology represent major advancements in battery performance and safety. We believe that our FCG cathode and polyaramid separator technologies are industry-leading innovations that provide higher energy density, enhanced safety, and longer battery cycle life compared to conventional materials. Below are key highlights from our technology portfolio:

Battery Cell Materials

•Polyaramid Separator: Our proprietary polyaramid separator is designed for safety and durability, offering improved thermal stability and mechanical strength compared to traditional polyethylene or polypropylene separators. Made from polyaramid, the same high-performance material used in bulletproof vests, it provides exceptional chemical, electrochemical, and thermal resistance, and is intended to provide long-term reliability. Unlike conventional separators that can melt around 138°C (280°F), our polyaramid separator maintains its structural integrity at temperatures up to 300°C (572°F), significantly enhancing battery safety. Additionally, it is intrinsically highly flame resistant, reducing the risk of thermal runaway, a critical factor in improving lithium-ion battery performance and reliability.

•Lithium Titanate Oxide (“LTO”) Powder: Our LTO powder enhances high-power operation, making it ideal for ultra-fast charging applications. Unlike traditional anode materials, LTO is inherently stable with conventional lithium-ion electrolytes, which can offer improved safety and longevity when compared to traditional graphite anodes.

•Full Concentration Gradient (“FCG”) Cathode: Licensed from Argonne National Laboratory in 2017, our FCG cathode technology is now produced with flexible and cost-effective manufacturing techniques, significantly improving affordability compared to standard NMC materials. We have found that by controlling the concentration of metals within each particle, we enhance battery safety and performance. Additionally, the cobalt content is reduced to less than 2% by weight, significantly lowering material costs while addressing the environmental and ethical concerns associated with cobalt mining. This versatile cathode can be customized for specific end-use applications, making it well-suited for ultra-fast charging and cost-efficient advanced lithium-ion cells. Additionally, this technology is especially well suited going forward for the development of materials that significantly reduce or eliminate cobalt.

•Electrolyte Formulation: Our proprietary electrolyte formulation can significantly reduce the risk of lithium-ion cell fires. Reducing the flammability of lithium-ion cells is an important safety feature that we believe will become more valued as the industry shifts toward higher energy density batteries.

Cell Chemistries

•Lithium Titanate Oxide: LTO replaces traditional graphite anodes, which can significantly enhance safety and fast-charging capabilities while supporting a longer cycle life. Although it has slightly lower energy density, our

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LTO cells can last up to 20 times longer than standard lithium-ion cells due to mitigation of cell gassing, a major factor in battery degradation, which can provide greater durability.

•Nickel Manganese Cobalt Oxide (“NMC”): For applications demanding higher energy density, our NMC-based cells are known for long-term cycle performance, sustaining up to thousands of charge cycles before significant degradation occurs. Our expertise in cathode and separator technology, enabled by our vertical integration, allows our NMC cells to offer lower TCO potential and enhanced safety compared to competitors. Third-party evaluations from U.S. National Labs and Technischer Überwachungsverein (“TÜV”) have validated our performance claims.

•Lithium Iron Phosphate (“LFP”): LFP is one of the safest and most cost-effective cathode materials, widely used in both commercial vehicle and ESS applications. While LFP uses higher lithium quantities than NMC, its lower-cost raw materials can contribute to its affordability.

•Solid-State Battery Development: Since 2015, we have been working towards developing a 100% solid-state battery technology that eliminates the need for liquid electrolytes. This approach aims to replace conventional designs with a fully solid framework, enhancing safety, energy density, and longevity. Currently, the energy density of the cell reaches 320 Wh/kg in bench scale validation. Prototype, bench-scale results may not be indicative of mass production performance.

Product Highlights

•One of our innovations is our high-energy NMC 53.5Ah battery cell, which offers an energy density of approximately 235 Wh/kg and supports up to 6,000 cycles at room temperature at a 1C rate while maintaining over 80% state of health (“SOH”). We believe these characteristics make it well suited for long-range commercial vehicle and ESS applications. To bring this product to market, we made substantial investments in fully automated production capacity in Huzhou, China.

•Our 48Ah cell is engineered for high-power, fast-charging use cases, capable of sustaining up to 3C continuous charge and discharge at room temperature and delivering up to 8,000 cycles with a SOH above 80%. This makes it a preferred solution for mission-critical applications such as buses or logistics fleets requiring operational uptime.

•The 55Ah cell strikes a balance between energy and power density, offering an energy density of approximately 250 Wh/kg and supporting up to 3C operation with up to 6,000 cycles at room temperature with a SOH above 80%. Its dual-optimized profile enables deployment across a variety of demanding commercial and specialty vehicle platforms.

•For applications where extended range and high energy density are paramount, we have introduced the 120Ah cell with an energy density of approximately 270 Wh/kg. At room temperature, under 1C charge/discharge conditions, the 120Ah cell can last up to 5,000 cycles with a SOH above 80%. With the integration of the high-voltage control box and thermal management systems, our complete power solution achieves a system-level energy density of approximately 200 Wh/kg. It is ideal for heavy-duty vehicles operating in long-haul scenarios where volumetric and gravimetric energy constraints are critical.

•Our 565Ah LFP cell adopts an aqueous-based slurry system for both cathode and anode production, which avoids the use of costly NMP (N-Methyl-2-Pyrrolidone) solvents and aligns better with regulatory and environmental conditions in North America.

Key Benefits of our Technology and Applications

Our advanced battery technologies and systems provide what we believe to be numerous advantages including ultra-fast charging, high energy density, longer cycle life, and industry-exceeding safety standards.

Tailored Battery Solutions

Our research in lithium-ion battery technology has enabled us to develop and commercialize a diverse range of cell chemistries, including LTO, LFP, NMC-1, and NMC-2. This broad portfolio allows us to customize solutions to meet specific customer requirements. By integrating their preferred chemistry into our modules and packs, we optimize the performance of each of our battery systems.

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We serve a diverse range of commercial vehicle markets, including:

•Light, medium, and heavy-duty trucks.

•Buses and trains.

•Mining trucks, port vehicles, and leisure boats.

•Automated guided vehicles and specialty vehicles.

Ultra-Fast Charging Capability

Depending on battery chemistry, Microvast's battery solutions can achieve a full charge in as little as 10 to 30 minutes, far exceeding conventional systems. Ultra-fast charging is a critical differentiator for our commercial vehicle solutions, while higher energy density cells are particularly beneficial for both electric commercial vehicles and ESS customers.

•LTO cells: Under appropriate conditions, full charge can be achieved within 10 minutes, offering an energy density of up to 180 watt-hours per liter (“Wh/L”) and 95 watt-hours per kilogram (“Wh/kg”).

•NMC-2 products: Under appropriate conditions, full charge can be achieved within 30 minutes, providing an energy density of over 220 Wh/kg.

Long Battery Cycle Life

Our battery systems have been tested to last between up to 2,500 to 20,000 full charge cycles, better aligning with the lifespan of commercial vehicles and energy storage projects. Our LTO-based batteries have the potential to retain 90% of their initial capacity after up to 10,300 full charge/discharge cycles, as validated by the Warwick Manufacturing Group at the University of Warwick.

Enhanced Safety and Reliability

Built on more than a decade of research, our battery technologies are designed to provide higher safety margins than conventional lithium-ion systems.

•LTO batteries can provide exceptional thermal stability and operate across a wide temperature range, minimizing fire risks.

•High-energy applications can utilize our polyaramid separator, flame-resistant electrolyte, and FCG cathode, further improving safety and durability.

Manufacturing Capacity

We measure our battery manufacturing capacity in GWh, which represents the energy capacity of all batteries produced for a single complete discharge, rather than the number of batteries we produce per year.

As of December 31, 2025, we had an annual manufacturing capacity of approximately 3.5 GWh of cell, module and pack capacity, 600 tons of annual cathode capacity, 3,000 tons of annual electrolyte capacity and 5 million square meters of annual separator material capacity on a pilot line. All of this capacity currently originates from our Huzhou, China facility.

Huzhou, China Facility

Our primary battery manufacturing capacity is currently via our Huzhou Phase 3.1 line. We are expanding our annual manufacturing capacity with the addition of the Phase 3.2 line.

Phase 3.1: In 2023, we completed a 2 GWh production line supporting our 53.5Ah, 48Ah, and 55Ah cell technologies. This line is fully operational and serves as our primary manufacturing source for high volume products.

Phase 3.2: We are currently finalizing construction of a second 2 GWh line. While primarily configured for our next-generation 120Ah high-energy cells, the line features flexible architecture to accommodate multiple formats. As of December 31, 2025, clean room and utility installations are complete and in operation. We expect equipment installation to conclude in 2026, followed by commissioning and pilot production.

Ludwigsfelde, Germany Facility

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We have a 170,000-square-foot manufacturing facility near Berlin, Germany which has been primarily utilized for module production since 2021. We continuously evaluate the European market and E.U regulations to assess future investments into our Ludwigsfelde facility.

Tennessee, United States Facility

In 2021, we purchased an existing building in Clarksville, Tennessee and began renovating it to support up to 2 GWh of cell, module, and pack capacity which we initially expected to be in operation by the third quarter of 2023. Due to delays in securing additional financing, progress of this project started to be impacted towards the end of the fourth quarter of 2023 and certain construction work streams could not be progressed on the timeframes we had originally planned. In the second quarter of 2024, we suspended construction on the Clarksville facility due to insufficient funding. We made a strategic decision to pivot from the originally planned production of NMC cells to LFP cells. We also consolidated our ESS operations from Colorado to Clarksville, Tennessee in order to streamline operations. Until financing is secured, this will limit our growth opportunities in the U.S. market. The Clarksville site serves as our main hub of operations in the U.S., where to better support our U.S. customer needs we have been providing warehousing, logistics, and servicing to our customers. These services defray the overall costs of maintaining the facility. Towards the end of 2025, we made a targeted investment in our Clarksville facility to establish a pack assembly line, expanding our domestic capabilities and supporting anticipated customer demand. We financed this investment through cash generated from our operating activities. Customer deliveries are expected from the pack line in 2026.

Supply Chain

Our manufacturing operations depend upon the timely delivery of high quality components and raw materials sourced from different suppliers. We utilize a global supply chain to source parts that are often standardized across our product lines, allowing us to take advantage of pricing efficiencies through economics of scale.

While we aim to maintain a diversified supplier base, we currently procure certain key components and specialized manufacturing equipment from single-source or limited-source suppliers. Where multiple sources are available for certain key components, we work to qualify multiple suppliers where possible to minimize potential production risks due to disruptions in their supply.

Our products use various raw materials including lithium, nickel, manganese, and copper. Pricing for these materials is governed by market conditions and may fluctuate due to various factors outside our control, such as supply and demand and market speculation.

Patents and Other Intellectual Property

Over the past 19 years, Microvast has built a comprehensive intellectual property portfolio, encompassing patents, licenses, and proprietary know-how that support our battery technology. We place a strong emphasis on our innovative proprietary designs to bring value and differentiation to our product portfolio.

Key Proprietary Material Technologies

•Polyaramid Separator: Our high-thermal polyaramid separator features a melting point above 300°C, which can significantly improve battery safety by reducing thermal runaway risks.

•Full Concentration Gradient Cathode: Licensed from Argonne National Laboratory in 2017, this cathode technology is distinguished by a gradual gradient in transition metal content, enhancing energy density, stability, and longevity.

•High/Low-Temperature Electrolyte: Our proprietary electrolyte remains stable at high temperatures (up to approximately 70°C) while maintaining approximately 70% energy efficiency at extreme cold temperatures (down to approximately -30°C). It can support full charge cycles from 0% to 100% in just one hour, providing high performance in diverse environmental conditions.

•Lithium Titanate Oxide Anode: Our LTO anode technology enables higher volumetric density, while maintaining ultra-fast charging properties. It mitigates solid-electrolyte interphase degradation and dendrite formation, which can lead to short circuits and fire hazards. Additionally, our proprietary LTO powder minimizes volume expansion, providing battery stability and extending cycle life.

•Advanced Anode Materials: We continue to experiment with and develop novel anode materials, including porous carbon-based anodes that allow higher charging rates than conventional materials. The porous structure enhances lithium-ion transport, contributing to faster charging without compromising safety or durability.

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Intellectual Property Protection and Strategy

Our commercial success relies, in part, on securing and maintaining intellectual property protection for our designs and proprietary technologies. Safeguarding our intellectual property assets is critical, given that it is a key driver of profitability.

To mitigate technology infringement risks, we employ strict data compartmentalization, ensuring that U.S. trade secrets and proprietary know-how remain isolated. We actively pursue patent protections and implement internal safeguards to protect both current and future proprietary innovations. For a detailed discussion on intellectual property risks, refer to "Risk Factors - Risks Related to Our Intellectual Property."

Trademarks and Branding

To reinforce brand recognition and market positioning, we apply trademarks to our batteries and battery-related technologies. We consider distinctive trademarks crucial for marketing and brand differentiation.

Microvast has registered its corporate trademarks, including our logo and product marks, across China, the U.S. and key international markets. Our trademark portfolio includes:

•Microvast®

•LpTO®, LpCO®, MpCO®, HpCO®

•Clean City Transit®

Research and Development

At Microvast, our R&D and engineering teams are dedicated to innovation. We focus on the design of new battery solutions and enhancing performance of existing systems. Our battery systems are designed to meet specific performance metrics such as energy density, power density, charge rate capability, cycle life, throughput energy, and safety. Through innovating, we aim to develop higher-performing, more efficient, and safer batteries for a wide range of applications.

We recognize that our ability to deliver high-performance batteries depends on the seamless transfer of R&D into large-scale production. To bridge this gap, we allocate part of our manufacturing capacity to pilot plants, enabling structured experimentation for process refinement and scalability. While experimental results at the bench or pilot scale may not always translate directly to mass production, we integrate R&D with our manufacturing processes to facilitate the transition of lab-based innovations to full-scale commercialization.

Our Huzhou, China manufacturing facility includes a technology center consisting of several buildings and is equipped with advanced scientific instruments such as X-ray powder diffraction machines, scanning electron microscopes, gas chromatograph/mass spectrometers, laser particle size analyzers and electrochemical test analyzers. These tools enable in-depth material analysis, safety testing, and process optimization.

In August 2024, we introduced to the market the Mega Energizer 6 (“ME6”), a 6 megawatt-hour (“MWh”) ESS container featuring our proprietary 565Ah LFP battery. The shift toward LFP technology for the U.S. ESS market is a strategic decision, offering lower costs, enhanced safety, and improved environmental performance compared to NMC technology.

In January 2025, we announced what we believe is an important milestone in all-solid-state battery (“ASSB”) technology. Our architecture eliminates liquid and gel electrolytes through a proprietary non-porous solid electrolyte membrane and a bipolar stacking configuration. This can enable single-cell voltages beyond conventional limits, potentially allowing outputs of tens to hundreds of volts. We have demonstrated functional prototypes in both 48-volt and 72-volt monolithic cells, with potential scalability to higher voltages. The current ASSB design includes fault tolerance, unlike conventional cells, which can prevent a single point of failure from taking down an entire system. This cell design, if able to be commercialized, could have potential use cases in emerging high-growth sectors. The bipolar design reduces the need for interconnects at the module and pack level, resulting in improved energy density, simplified system architecture, and enhanced safety. We are evaluating industrialization paths and planning to establish a pilot line for production study. Prototype, bench-scale results may not be indicative of mass production performance.

Our continued dedication to cutting-edge battery technology is reflected in our annual R&D expenditures, totaling $34.1 million in 2025. These investments underscore our commitment to research excellence, ensuring that Microvast remains at the forefront of battery innovation, safety, and performance.

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Sales and Marketing

Our products are marketed and sold through a direct sales force across three regions: Europe, Middle East and Africa; North and South America; and Asia & Pacific. Some of our key marketing attributes are our innovative technology and our commitment to quality and customer satisfaction. Microvast utilizes digital marketing and social media to reach audiences and engage with customers. Microvast also participates in industry trade shows and events to showcase its products and technologies, network with potential customers, and generate leads. After-sales service and support are critical components of Microvast’s sales strategy. We offer maintenance services, technical support, and training programs to ensure that customers are satisfied with their products and receive ongoing assistance as needed. By utilizing a combination of direct sales, online channels, and trade shows, Microvast is able to effectively reach customers across various industries and geographies. This diverse sales approach enables the Company to maximize its market potential and drive continued growth in the battery industry.

Battery Solutions for Electric Commercial Vehicles

We directly engage with EV and drivetrain manufacturers to highlight our technology and product benefits. Sales cycles differ by market segment and geographic region and usually involve an extensive development and qualification period before commercial production. We expect the total time from customer introduction to commercial manufacturing to range from 2 to 4 years depending on the specific solution and market segment. For example, total time in the transportation market includes a customer’s preliminary technology review, which generally ranges from 3 to 9 months, followed by test and evaluation, which generally ranges from 12 to 18 months. We also offer off-the-shelf packs that can significantly shorten our customers' time to market. Such off-the-shelf opportunities have become more and more relevant for small and medium size new market players whose prime objective is to disrupt established markets, especially in the light and medium duty vehicle sector by offering new vehicle concepts.

Energy Storage Systems

The target audience for Microvast includes commercial and industrial scale customers. The sales cycle, involving a request for proposal process, typically spans 6 to 12 months from initiation to manufacturing. A key advantage of the ESS business is the shorter sales cycle, as project owners and developers face fewer testing requirements than those for EV batteries.

Battery Components

Our promotion of battery components begins with engaging R&D engineers from passenger car OEMs and consumer electronics manufacturers. We may provide select customers with material samples or prototypes for evaluation to facilitate component sales.

Battery Materials

•Anode: Our anode is selected historically from LTO or graphite in our production cells. In the coming years, we anticipate that we will develop and market a new product that contains silicon or silicon oxide.

•Cathode: For NMC, our existing products are made using commercially supplied materials, and our future cell products may utilize FCG or other cathode technologies. For NMC-based cathodes, the sourcing and availability of cobalt is a key issue for many OEM buyers. As such, we are actively engaged in research to greatly reduce or eliminate the use of cobalt from our material stream. LFP cells include raw materials sourced from a commercial supplier.

•Electrolyte: Our current lithium-ion cells utilize liquid-based electrolyte formulations. We often purchase base solvents for carbonate-based electrolytes from commercial suppliers to leverage cost benefits of scale, blending them in-house to protect our proprietary formulations.

•Separator: The separator is another key material in our lithium-ion cells. While we have in the past used the industry standard polyethylene/polypropylene materials, we are now working so that in the future we can produce cells with our proprietary polyaramid technology. We are also leveraging our polyaramid expertise in developing a solid electrolyte battery system incorporating polyaramid material. If the solid electrolyte approach is successful, not only will it eliminate the use of liquid electrolytes, but it could potentially enable new anode chemistries such as lithium metal, which is required to produce cells with over 1,000 Wh/l energy densities.

Suppliers and Supply Arrangements

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We source key electrode raw materials and various components exclusively from a select few third-party suppliers. Purchasing raw materials in bulk has enabled us to secure long-term supply agreements, improving cost and payment terms with suppliers. We have also increased the sources of supply for some of our key raw materials. Our suppliers may adjust prices based on fluctuations in benchmark prices for raw materials or their base metals. See “Risk Factors — Risks Related to our Business and Industry — We currently purchase certain key raw materials and components from third parties, some of which we only source from one supplier or from a limited number of suppliers.”

Customers

We have established various arrangements with leading global EV manufacturers to develop batteries and systems, primarily for the commercial vehicle market. Our battery systems are used in the plug-in hybrid EV, battery EV, and hybrid EV markets. In the electric commercial vehicle market, we typically engage in long-term supply or framework agreements without imposing minimum purchase obligations on the customer. Customers under these agreements issue purchase orders for specific quantities of battery systems, which serve as their contractual commitments.

The sales cycle of our solutions and a relatively small customer base result in significant customer concentration. In 2025, our top five customers accounted for 58.4% of our revenue. See “Risk Factors — Risks Related to our Business and Industry — Our revenue heavily depends on a limited customer base, a trend likely to continue."

As of December 31, 2025, our battery systems had an order backlog worth approximately $196.1 million. We expect to fulfill most of our backlog within 2026 and 2027.

Human Capital Resources

As of December 31, 2025, Microvast employed 1,908 full-time employees and 266 independent contractors. Our senior management team and key decision-making processes are centralized in the U.S., ensuring strategic alignment across our global operations.

Our human capital resource strategy is centered on attracting, developing, and retaining top talent while fostering a culture rooted in integrity, transparency, safety, diversity, open-mindedness, and teamwork. We understand that our commitment to technological innovation and exceptional customer service is driven by the dedication and contributions of our employees. A versatile workforce—encompassing various backgrounds, skills, and perspectives—fuels innovation, enhances problem-solving, and strengthens our ability to meet customer needs.

Our results-oriented culture is dedicated to delivering differentiated solutions faster than our competitors, reinforcing our competitive edge. To support this, we provide full-time employees with competitive benefits packages, including annual performance-based bonuses and equity-based compensation opportunities for eligible employees. These programs help us attract, engage, and retain high-caliber professionals who are invested in our company’s growth.

Employee safety remains a top priority at all Microvast locations. Our health and safety programs are built on global safety standards, and performance is measured, evaluated, and reported to leadership on a monthly basis. To date, we have not experienced any work stoppages due to labor disputes, health or safety issues, and we consider our employee relations to be strong. By continuously investing in workplace safety, employee well-being and professional growth, we aim to cultivate a dynamic and high-performing workforce that drives long-term success.

Competition

The battery industry is highly competitive and rapidly evolving, driven by technological advancements, shifting customer demands and, the continuous introduction of new innovations. To maintain a competitive edge, battery manufacturers must adapt to changing market dynamics while delivering high-performance, cost-effective, and reliable solutions.

We believe the primary competitive factors in our industry include:

•product performance, reliability, and safety;

•integrated solutions;

•total cost of ownership;

•regional and industrial regulations;

•pricing and payment terms;

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•balance sheet strength and access to financing;

•availability and pricing of raw materials;

•time to market for new technologies; and

•manufacturing capabilities.

Our competitors range from large, well-established battery manufacturers to emerging technology startups focused on disruptive battery innovations. The global battery market is dominated by manufacturers from China, Japan, and South Korea, who leverage economies of scale and aggressive pricing strategies to maintain market share. See “Risk Factors — Risks Related to Our Business and Industry.” Our ability to differentiate through superior technology, operational efficiency, and market adaptability will be critical to sustaining long-term growth and competitiveness in this rapidly evolving landscape.

Governmental Regulation and Environmental Compliance

Environmental, Health and Safety Matters — Our China Facility

Our manufacturing activities in China are subject to Chinese environmental laws and regulations governing air emissions, wastewater discharge, solid waste, noise, and the generation, handling, storage, use, transportation, and disposal of hazardous materials. Our Environmental Management system is certified to ISO 14001:2015 and our Occupational Health and Safety system is certified to ISO 45001:2018. Our management systems support our commitment to ensuring that we are in compliance with applicable environmental, health and safety laws and regulations in all material aspects. Concurrently with the construction of our manufacturing facilities, we constructed treatment facilities designed to treat their emissions, water discharges, and solid waste we generate in accordance with applicable requirements. We have outsourced the disposal of hazardous waste we generate to a third-party contractor, who is responsible for ensuring compliance with related environmental requirements. While we believe we have maintained pollutant emission levels at each of our facilities in material compliance with levels prescribed by the relevant governmental authorities, and that we are in material compliance with applicable environmental laws, we cannot rule out to the possibility that we could incur fines or penalties for violations of Chinese law, or that costs of complying with applicable laws might significantly increase.

Environmental , Health and Safety Matters — Our Germany Facility

Operations at our German facility are subject to a variety of environmental, health and safety regulations. Quality Management system is certified to IATF 16949:2016 and ISO 9001:2015. The environmental certification to ISO 14001:2015 was achieved in 2025. All our machines and production lines are delivered with Conformitè Europëenne, European Quality Standard label according to the Machinery Directive 2006/42/EG.

Transportation of lithium-ion batteries requires compliance with Germany and EU rules governing the transportation of “dangerous goods.” We only use carriers that meet applicable legal requirements. Beginning in the third quarter of 2025, the shipment of used and waste batteries became subject to the new EU Battery Regulation 2023/1542, requiring us to keep documentation on hand to allow authorities to distinguish between the shipments of used and waste batteries. We have implemented policies and programs designed to assure compliance with our obligations such as machine guarding, laser welding, hazardous material management, and transportation. Furthermore, to maintain existing building permits, we are obligated to perform environmental compliance and fire protection concept requirements under German regulations. All these standards and certificates are designed to comply with applicable government regulations and laws, as well as the standards of the automotive industry.

We conduct routine employee trainings and system audits to promote and assure environmental compliance, and track regulatory developments and trends to ensure that we are prepared to comply with any new battery requirements that may be imposed. We also continue to emphasize the importance of environmental sustainability in our operations, as demonstrated most recently by our pilot project for “Sustainable Battery Production” with TÜV SÜD Germany.

Environmental, Health and Safety Matters — Our U.S. Facility

Federal, state, and local regulations impose significant environmental, health, and safety requirements on the manufacture, storage, transportation and disposal of various components as currently used or that will be used in our U.S. battery cell manufacturing and ESS container assembly operations. On the federal level, various agencies regulate the manufacture, storage, transportation, and disposal of batteries, including the U.S. Environmental Protection Agency (“EPA”), the Occupational Safety and Health Administration (“OSHA”), and the U.S. Department of Transportation (“DOT”). Battery manufacturing facilities must follow the EPA’s Battery Manufacturing Effluent Guidelines and

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Standards, which are incorporated into the EPA’s National Pollutant Discharge Elimination System’s (“NPDES”) permitting regulations. NPDES permits are required for direct dischargers of certain battery manufacturing waste. Further, the EPA is expected to finalize newly-proposed Resource Conservation and Recovery Act (“RCRA”) regulations for lithium batteries finalized this year, and become effective in 2027. These new regulations would create a new waste category specifically for lithium batteries and establish new requirements for battery transportation, handling and storage.

In addition to providing general industrial safety regulations, OSHA also dictates specific safety requirements for workers in the battery manufacturing and battery charging industries. On the transportation side, lithium batteries are regulated as a hazardous material under the DOT’s Hazardous Materials Regulations (“HMR”) and must conform to all applicable HMR requirements when transported by air, highway, rail, or water. U.S. state and local laws can impose additional regulations, particularly in the areas of safety, recycling, and proper handling of batteries.

Federal, state, and local governments may in the future enact additional regulations relating to the manufacture, storage, transportation, and disposal of components of advanced ESS. Compliance with such additional regulations could require us to devote significant time and resources and could adversely affect demand for our products.

As we continue to develop our operations in the U.S. we are following international standards and guidelines as we develop our Environmental and Occupational Health and Safety Management systems. Although we believe that our operations are in material compliance with current applicable environmental regulations, there can be no assurance that changes in such laws and regulations will not impose costly compliance requirements on us or otherwise subject us to future liabilities.

General Environmental Matters

We are not aware of any pending or threatened government or private investigations, proceedings, or other matters against us alleging a violation or liability under environmental laws that could reasonably be expected to adversely affect our business. However, we cannot rule out the possibility that we could become subject to such proceedings in the future. See “Risk Factors — Risks Related to our Business and Industry — Compliance with environmental regulations can be expensive, and failure to comply with these regulations may result in monetary damages and fines, adverse publicity and have a material adverse effect on our business.”

Workers’ Health and Production Safety Compliance

We are subject to numerous laws and regulations related to the health of our employees and production safety of our facilities in each jurisdiction in which we operate.

In some jurisdictions, these laws and regulations include a requirement to engage a qualified engineering firm to conduct a safety evaluation report on our work safety conditions and to file such safety evaluation report with the local work safety authority for the use of hazardous chemicals in our manufacturing process.

We are not aware of any pending or threatened government or private investigations, proceedings, or other matters against us alleging a violation or liability under applicable worker health and safety laws that could reasonably be expected to adversely affect our business. However, we cannot rule out the possibility that we could become subject to such proceedings in the future. See “Risk Factors — Risks Related to our Business and Industry — We may fail to comply with certain health and production safety laws and regulations governing hazardous materials.”

Seasonality

We have historically experienced higher sales during our third and fourth fiscal quarters as compared to our first and second fiscal quarters. However, our limited operating history makes it difficult for us to judge the exact nature or extent of the seasonality of our business.

Corporate Information

Microvast, Inc. was initially incorporated in Texas in 2006, then re-incorporated as a Delaware corporation in December 2015. On July 23, 2021, Tuscan Holdings Corp. ("Tuscan") a Delaware corporation established in November 2018 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or

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similar business combination with one or more businesses, consummated the acquisition of Microvast, Inc. pursuant to an Agreement and Plan of Merger dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc. (the “Business Combination”). Following the Business Combination, we changed our name from Tuscan to “Microvast Holdings, Inc.” Our principal executive offices are located at 12603 Southwest Freeway, Suite 300, Stafford, Texas 77477, and our telephone number is (281) 491-9505. Our website is https://www.microvast.com. The information posted on our website is not incorporated by reference into this Annual Report.

We make available on or through our website certain reports and amendments to those reports that we file with or furnish to the U.S. Securities and Exchange Commission (“SEC”) in accordance with the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These include our annual reports on Form 10-K, our quarterly reports on Form 10-Q, and our current reports on Form 8-K, amendments to those reports and our Proxy Statement for our annual meeting of stockholders. These filings are available for download free of charge on our investor relations website located at https://www.ir.microvast.com/financials-filings/sec-filings. The SEC also maintains a website that contains reports, proxy statements and other information about issuers that file electronically at https://www.sec.gov.