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Area Development - Site Selection, Facility Planning and Workforce Development

Microvast Advanced Membrane Plans Hopkinsville, Kentucky, Mass Production Facility

04/05/2023
Microvast Advanced Membrane Inc. will establish a production facility in Hopkinsville, Kentucky. The $504 million project is expected to create 562 jobs.

The new 350,000-square-foot building, located on 100 acres at Commerce Park II, will help integrate polyaramid into EV battery designs, including Microvast’s cells as well as those of other third-party battery manufacturers. Polyaramid is a high temperature-resistant, fire-retardant aromatic polyamide, which is commonly used in firefighting garments and insulating papers. Operations are scheduled for March 2025.

“We are excited to announce this next chapter for Microvast, as we intend to build the world’s first mass production facility for our cutting-edge polyaramid separator technology,” said Yang Wu, Microvast’s founder, chairman, president and chief executive officer. “This material took over 10 years to develop internally, and we believe it offers significant safety advantages compared to other polypropylene or polyethylene separator technology available today. We are pleased to expand our manufacturing footprint into Kentucky and are eager to work closely with the local community as we begin construction.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $18 million in tax incentives based on the company’s investment of $504 million and annual targets of creation and maintenance of 562 Kentucky-resident, full-time jobs across 15 years; and paying an average hourly wage of $25 including benefits across those jobs.

Additionally, KEDFA approved Microvast for up to $3 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

“Kentucky continues to position itself as the top EV-related manufacturing location in the country,” noted Governor Andy Beshear. “We are committed to creating an environment where the industries of the future can grow and thrive right here in the commonwealth, and Microvast’s investment is a huge step toward that goal.”

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, Microvast can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“We are ecstatic that Microvast has chosen our region for their next investment in EV battery technology,” added Carter Hendricks, executive director of the South Western Kentucky Economic Development Council. “We’re excited to work with the company leadership as they execute this transformational opportunity for our region’s residents.”

Headquartered in Stafford, Texas, Microvast is a vertically integrated manufacturer, producing materials, individual battery cells and commercial vehicle and energy storage systems. The company has three existing production sites worldwide, including its 2 gigawatt-plus site in Clarksville, Tennessee, that is expected to start production in late 2023.

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