Microvast is putting their proposed Hopkinsville location on hold, citing market conditions and other recent developments.
According to a news release from Microvast itself, the company is reassessing the viability in proceeding with the project that was intended to be located in Commerce Park #2 in Hopkinsville, calling the decision to not pursue the construction of the plant ‘disappointing’.
Microvast Chief Financial Officer Craig Webster says, “Our commitment to build the world’s first mass polyaramid separator production facility in the U.S. remains unchanged. Given market conditions, including interest rates doubling in the last year, we have decided to not move forward with our construction plans for the plant and will focus on our core business for now.”
This comes after the U.S. Department of Energy made the decision to not award Microvast $200 million in grant funds for their projects, and the State of Kentucky chose to pause roughly $21 million in incentives as they looked closer into the Department of Energy decision.
Southwestern Kentucky Economic Development Director Carter Hendricks says they remain hopeful that Microvast may yet settle in Hopkinsville in the future, with the company very complimentary of the area.
He says in the meantime, they continue to put that property back on the market and are confident that another industry will one day call it home.
The company states they are committed to expanding the supply chain for advanced batteries in its facilities in the U.S., focusing specifically on completing their production plant in Clarksville.
Microvast was founded in 2006 and is headquartered in Stafford, Texas.