Microvast Holdings, Inc. reported a 24% year-over-year revenue increase for the year ended December 31, 2024, reaching $379.8 million. This increase was driven by a 41.6% rise in sales volume, from 1,139.6 megawatt hours (MWh) in 2023 to 1,613.6 MWh in 2024. The company's order backlog stood at $401.3 million as of December 31, 2024, with the majority expected to be fulfilled in 2025 and 2026. However, the company reported a net loss of $195.5 million for the year, impacted by a $93.2 million impairment loss on long-lived assets and a $79.96 million non-cash loss related to changes in the fair value of a convertible loan.
Significant changes compared to the previous fiscal year include a substantial increase in revenue, driven by higher sales volume, and a widening of the gross profit margin from 18.7% to 31.5%. This improvement was attributed to higher production utilization, a more favorable product mix, and lower raw material prices. Conversely, operating expenses decreased year-over-year, primarily due to reductions in share-based compensation expenses. The company also noted a material weakness in its internal control over financial reporting related to information technology general controls for its ERP system.
Strategic developments during the year included the launch of the Mega Energizer 6 MWh (ME6) energy storage system (ESS) container in August 2024, featuring a lithium iron phosphate (LFP) battery. This shift to LFP technology for the U.S. ESS market was a strategic decision based on lower costs, greater safety, and environmental benefits compared to nickel manganese cobalt (NMC) technology. The company also announced a breakthrough in solid-state battery technology in January 2025, and plans substantial research and development (R&D) investment to accelerate its commercialization. Construction of the Clarksville, Tennessee facility was paused due to insufficient funding, impacting the timeline for domestic cell and module manufacturing.
Operationally, Microvast employed 1,921 full-time employees and 334 independent contractors as of December 31, 2024. The company's top five customers accounted for 60% of its revenue in 2024. The company's total annual manufacturing capacity as of December 31, 2024 was approximately 3.5 gigawatt hours (GWh), primarily located in Huzhou, China. The company highlighted its vertically integrated approach, controlling the production of key battery components. The company also noted its expansion into new markets, including the marine sector through a partnership with Evoy AS.
The company acknowledged several risk factors, including its ability to remain a going concern, the need for additional capital to support growth, potential difficulties in maintaining manufacturing capacity, risks related to operations in China, and the highly competitive nature of the battery market. The company also discussed various legal proceedings, including securities litigation and derivative actions. The company stated that it does not anticipate paying dividends on common stock in the foreseeable future. The company's outlook is focused on driving battery innovation, scaling global production, and delivering high-performance sustainable energy solutions.
About Microvast Holdings, Inc.
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