What happened
Shares of Microvast Holdings (MVST +10.28%) plunged more than 13% through the first two weeks of October, according to data provided by S&P Global Market Intelligence, underperforming the S&P 500, which nudged 0.07% lower. The stock's trajectory reversed course this week, though -- and in a big way -- after the White House announced that the Department of Energy had awarded Microvast a $200 million grant.
Shares of Microvast, a manufacturer of lithium-ion batteries, ended this week 59.2% higher from where they closed last Friday.
NASDAQ: MVST
Key Data Points
So what
Thanks to the funding provided by the Bipartisan Infrastructure Law, the Department of Energy awarded Microvast $200 million for its thermally stable polyaramid separator manufacturing plant proposal. Microvast's project was one of 21 the Department of Energy provided funding to with regard to the Battery Materials Processing and Battery Manufacturing section of the legislation.
According to Microvast, its proprietary aramid separator has twice the temperature resistance of traditional polyethylene separators. The company's advanced technology offers several benefits for electric vehicle (EV) batteries, including improved safety, faster charging times, and longer battery life. Using the Department of Energy's funding, Microvast will develop a separator facility with the capacity to supply 19 gigawatt-hour (GWh) of EV batteries.
Now what
In the pre-revenue phase of its development, Microvast should only attract the attention of investors willing to carve out a niche of their portfolios for speculative investments. While the stock soared this week, those comfortable with the risk of investing in Microvast can pick up the stock for a price about 76% lower than its 52-week high.
