0001760689-23-000014 | 10-K | XBRL Viewer

Schedule of Company’s Major Subsidiaries

As of December 31, 2022, details of the Company’s major subsidiaries are as follows:

Subsidiaries

Place of incorporation

Date of
incorporation
or acquisition

Percentage
of ownership

Microvast, Inc. (“Microvast”)

Delaware, USA

October 2006

100

Microvast Power Solutions, Inc (“MP Solutions”)

Texas, USA

July 2013

100

Microvast Power Systems Co., Ltd. (“MPS”)

Huzhou, PRC

December 2006

100

Microvast GmbH (“MV GmbH”)

Germany

May 2016

100

Huzhou Hongwei New Energy Automobile Co., Ltd. (“Hongwei”)

Huzhou, PRC

December 2016

100

Microvast Energy, Inc. (“MV Energy”)

Colorado, USA

July 2022

100

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Basis of consolidation

The consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Noncontrolling interests and redeemable noncontrolling interests

For the Company’s consolidated subsidiaries, noncontrolling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated statements of operations and comprehensive loss to distinguish the interests from that of the Company.

Noncontrolling interests in subsidiaries that are redeemable at the option of the holder and not solely within the control of the Company for cash or other assets are classified outside of permanent equity at redemption value as redeemable noncontrolling interests. If the redemption event is probable to occur, the Company records the redeemable noncontrolling interests at the redemption value on each balance sheet date with the changes recognized as an adjustment to equity.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue, costs and expenses in the consolidated financial statements and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Actual results could differ from these estimates. Significant accounting estimates reflected in the Group’s financial statements include allowance for doubtful accounts, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranties, fair value measurement of Bridge Notes, fair value measurement of warrant liability and share based compensation.

Emerging Growth Company

Pursuant to the JOBS Act, an emerging growth company may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies.

The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act so long as the Company qualifies as an emerging growth company, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, or which have maturities of three months or less.

Restricted cash

Restricted cash represents deposits made to banks to secure bank acceptance notes (or Notes Payable), letters of credit issued by the Group, and restricted use bank borrowings (see Note 12). It is common in the PRC that the banks require the Group to pledge notes receivable or make a deposit as collateral. The deposits and the matured bank acceptance notes from its customers are recorded as restricted cash in the consolidated balance sheets.

Accounts receivable

Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for doubtful accounts. Beginning on January 1, 2022, the Group evaluates its accounts receivable for expected credit losses on a regular basis. The Group maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Group uses the creditworthiness of customers, aging of the receivables, past transaction history with customers and their current condition, changes in customer payment terms, specific facts and circumstances, and the overall economic climate in the industries the Group serves to monitor the Group's receivables within the scope of expected credit losses model and use these as a basis to develop the Group's expected loss estimates.

Notes receivable and payable

The Group accepts bank acceptance notes (“notes”) from customers in the PRC in the normal course of business. The Group may present these notes with banks in the PRC for cash payment or endorse these notes to its suppliers to settle its accounts payable. The Group derecongnised the endorsed notes upon transferring them to its suppliers as the Group loses effective control over these notes. Notes receivable and payable are typically non-interest bearing and have maturities of one year or less.

As of December 31, 2021 and 2022, the balance of notes receivable were $11,144 and $2,196, respectively while certain notes receivable have been pledged to our banks to secure their issuance of bank acceptance notes for the Group.

Short-term investments

The Group’s short-term held-to-maturity investments are classified based on their contractual maturity dates which are less than one year and are recorded at their amortized costs. The Company recognized $37, $ nil and $70 interest income from the short-term investments for the years ended December 31, 2020, 2021 and 2022, respectively.

The Group reviews its held-to-maturity investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the instruments, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidated statements of operations.

Inventories, net

Inventories of the Group consist of raw materials, work in process and finished goods. Inventories are stated at the lower of cost or net realizable value. Inventory costs include expenses that are directly or indirectly incurred in the acquisition and production process, including shipping and handling costs charged by suppliers. The cost of materials and supplies used in production, direct labor costs and allocated overhead costs are all included in the inventory costs. The allocated overhead cost includes depreciation, insurance, employee benefits, and indirect labor. Cost is determined using the weighted average method. Inventories are written down to net realizable value taking into consideration of estimates of future demand, technology developments, market conditions and reasonably predicative costs of completion or disposal.

Prepaid expenses and other current assets

Prepaid expenses and other current assets primarily consist of advances to suppliers, prepaid expenses, deposits and value-added tax receivables.

Property, plant and equipment, net

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:


Buildings			20 years
Machineries and equipment			10 years
Fixtures and electronic equipment			4 - 5 years
Motor vehicles			5 years
Leasehold improvements			Shorter of the lease term or estimated useful lives

Construction in progress represents manufacturing facilities and equipment under construction, and is stated at cost. The capitalization of these costs ceases when construction in progress is transferred to property, plant and equipment and substantially ready for its intended use. No depreciation is recorded for construction in progress. Repair and maintenance costs are charged to expenses as incurred.

Land use rights, net

Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives, which are generally 50 years and represent the shorter of the estimated usage periods or the terms of the land use rights agreements.

Acquired intangible assets, net

Acquired intangible assets with definite lives are amortized on a straight-line basis over their expected useful economic lives.

Impairment of long-lived assets

The Company reviews long-lived assets with finite lives, including identifiable intangible assets with determinable useful lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2020, 2021 and 2022, the Group recognized impairment losses of $567, $2,443 and $1,798 related to long-lived assets, respectively.

Fair value of financial instrument

Financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable, notes receivable, other receivable, amounts due from/to related parties, accounts payable, short-term bank borrowings, notes payable, bonds payable, Bridge Notes and warrant liability. The Group carries its cash and cash equivalents, restricted cash, Bridge Notes and warrant liability at fair value. The carrying values of other current financial instruments approximate their fair values reported in the consolidated balance sheets due to their short-term maturity.

Fair value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Authoritative literature provides a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Revenue recognition

Nature of Goods and Services

The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is providing the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services.

Contract balances

Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration is unconditional. The allowance for doubtful accounts reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheet, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the years ended December 31, 2020, 2021 and 2022, the Group recognized $582, $1,455 and $1,151 of revenue previously included in advance from customers as of January 1, 2020, January 1, 2021 and January 1, 2022, respectively, which consist of payments received in advance related to its sales of lithium-ion batteries.

Value added taxes

The Group reports revenue net of VAT. Entities in PRC that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities.

Cost of revenues

Cost of revenues primarily consists of the cost of the products ultimately sold to customers, shipping and handling costs charged to the Group in the sales, product warranty expense, provision for obsolete inventories and other related cost that are directly attributable to the production of products.

Product Warranty

The Group provides product warranty, which entails repair or replacement of non-conforming items, in conjunction with the sales of products. The warranty liability recorded at each balance sheet date reflects management’s best estimates of its product warranty based on historical information and other currently available evidence.

The Group’s product warranty generally ranges from one to eight years. The Group establishes a reserve for the estimated cost of the product warranty at the time revenue is recognized. The portion of the warranty that is expected to incur within the next 12 months is recorded in accrued expenses and other current liabilities, while the remaining balance is recorded in other non-current liabilities on the consolidated balance sheets. Product warranty is recorded as a cost of revenues.

Research and development expenses

Research and development expenses primarily consist of salaries and benefits for research and development personnel, raw materials, office rental expense, general expenses and depreciation expenses associated with research and development activities.

Subsidy income

Government subsidies represent government grants received from local government authorities.

Government subsidies related to the investment in production facilities is initially recorded as other current or other non-current liabilities and is amortized on a straight-line basis to offset the cost of revenues over the life of the relevant production assets or amortized on an effective interest method over the term of the loan.

The Group amortized the deferred subsidy at $166, $269 and $538 during the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the carrying amount of the current portion of the deferred subsidy income was $324 and $542, and the non-current portion was $2,286 and $3,066, respectively.

Income taxes

Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized.

The Group accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Group recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Share-based compensation

Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital.

For share-based awards granted with performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards based on total shareholder return (“TSR”), compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Forfeitures are recognized as they occur.

Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement.

Operating leases

On January 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets of $18,826 and operating lease liabilities of $18,776 upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The adoption of the new guidance did not have a material effect on the consolidated statements of operations. As of December 31, 2022, the Company recorded operating lease right-of-use (ROU) assets of $16,368 and operating lease liabilities of $16,281, including current portion in the amount of $1,934, which was recorded under accrued expenses and other current liabilities on the balance sheet.

The Company determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less.

As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.

Warrant Liability

The Company accounts for warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. As the Private Warrants (as defined below Note 15) meet the definition of a derivative as contemplated in ASC 815, the Company classifies the Private Warrants as liabilities. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the statements of operations. The Private Warrants are valued using a Monte Carlo simulation model on the basis of the quoted market price of the Company’s publicly-traded warrants.

Comprehensive loss

Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss.

Net loss per share

Basic loss per share is computed by dividing net loss attributable to common stock, considering the accretions to redemption value of any preferred shares, by the weighted average number of common stock outstanding during the year using the two-class method. Under the two-class method, any net loss is allocated between Common Stock and other participating securities based on their participating rights. Net loss is not allocated to participating securities when the participating securities do not have a contractual obligation to share losses.

The Company’s preferred shares that existed before its Merger, were participating securities as they participated in undistributed earnings on an as-if-converted basis. The preferred shares had no contractual obligation to fund or otherwise absorb the Company’s losses. Accordingly, any undistributed net loss was allocated on a pro rata basis to the common stock and preferred shares; whereas any undistributed net loss is allocated to ordinary shares only. All preferred shares that existed prior to the Merger were converted into common stock pursuant to the Merger and as of December 31, 2022, the Company does not have any preferred shares in issue.

Diluted loss per share is calculated by dividing net loss attributable to Common Stock, as adjusted for the accretion and allocation of net loss related to preferred shares, if any, by the weighted average number of Common Stock and dilutive Common equivalent stock outstanding during the period. Common equivalent stock consist of shares issuable upon the conversion of any preferred shares and convertible bonds using the if-converted method, and Common Stock issuable upon the vesting of non-vested shares or exercise of outstanding share options (using the treasury stock method). Common equivalent stock are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Common equivalent stock are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive.

Foreign currencies

The functional currency of the Company and all subsidiaries located in the U.S. is the United States dollar (“U.S. dollar”). For the Company’s subsidiaries located in the PRC, the functional currency is the Chinese Renminbi (“RMB”); the Company’s UK subsidiary, MP UK, the functional currency is the Great British Pound (“Pound”); the Company’s Germany subsidiary, MV GmbH, the functional currency is the Euro, and the Company’s Singapore subsidiary, MV Singapore, the functional currency is the Singapore Dollar (“SGD”).

In preparing the consolidated financial statements of each individual group subsidiary, transactions in currencies other than the subsidiary’s functional currency (foreign currencies) are converted into the functional currency at the rates of exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on the monetary items are recognized in the consolidated statements of operations in the period in which they arise.

For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into the reporting currency of the Group (i.e. US$) at the prevailing exchange rate at the end of the reporting period, and their income and expenses are translated at the average exchange rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a component of other comprehensive loss.

Foreign currency risk

RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents and restricted cash of the Group included aggregate amounts of $102,782 and $98,021 as of December 31, 2021 and 2022, respectively, which were denominated in RMB.

Concentration of credit risk

Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, notes receivable and short-term investments. The Group places its cash and cash equivalents with financial institutions with high credit ratings and quality. The Group conducts credit evaluations of customers and generally does not require collateral or other security from its customers.

The following table summarizes net revenues from customers that accounted for 10% or more of the Group’s net revenues for 2020, 2021 and 2022:


	December 31, 2020	December 31, 2021		December 31, 2022
Percentage of revenue contributed by Customer A	*%	11	%	12	%

*Revenue from such customer represented less than 10% of the Group's revenue during the respective periods.

The following table summarizes accounts receivable from customers that accounted for 10% or more of the Group’s accounts receivable:


	December 31, 2021		December 31, 2022
Percentage of accounts receivable from Customer A	*%		22	%
Percentage of accounts receivable from Customer B	18	%	*%

*Accounts receivable from such customers represented less than 10% of the Group's accounts receivable during the respective years.

Supplier Concentration

The Group relies on third parties for the supply of raw materials. In instances where these parties fail to perform their obligations, the Group may find alternative suppliers in the open market. For the years ended December 31, 2020, 2021 and 2022, 12%, 12% and 18% of our raw materials were purchased through company C, respectively, although numerous alternate sources of supply are readily available on comparable terms for the raw materials supplied by company C.

Newly adopted accounting pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public companies, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the consolidated financial statements.

Newly adopted accounting pronouncements - continued

As an EGC, the Company adopted this standard on January 1, 2022, and elected not to recast the comparative periods presented. The adoption did not have a material impact on the Company's consolidated statements of operations or consolidated statements of cash flows, and the adoption of Topic 842 did not result in a cumulative-effect adjustment to retained earnings. Further information is disclosed in Note 17 – Leases.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As an EGC, the Company adopted this standard on January 1, 2022, using a modified retrospective transition method and did not restate the comparable periods, which resulted in a cumulative-effect adjustment to decrease the opening balance of retained earnings on January 1, 2022 by $866. The adoption did not have a material impact on the Company’s consolidated financial statements.

Recent accounting pronouncements not yet adopted

In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)-Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted net income per share calculation in certain areas. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2020-06 may have on the consolidated financial statements and related disclosures.

NET LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share for the years indicated:


	Year Ended December 31,
	2020		2021		2022
Numerator:
Net loss attributable to Common Stock shareholders	$	(80,963)	$	(234,103)	$	(158,200)
Denominator:
Weighted average Common Stock outstanding used in computing basic and diluted net loss per share	99,028,297		185,896,482		303,279,188
Basic and diluted net loss per share	$	(0.82)	$	(1.26)	$	(0.52)

Schedule of Outstanding were Excluded from the Calculation of Diluted Net Loss per Ordinary Share

For the years ended December 31, 2020, 2021 and 2022, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the years prescribed.


	Year ended December 31,
	2020	2021	2022
Shares issuable upon exercise of share options	18,281,198	33,786,356	35,244,877
Shares issuable upon vesting of non-vested shares	72,122	167,268	1,399,711
Shares issuable upon exercise of capped non-vested shares	—	—	7,314,598
Shares issuable upon exercise of warrants	—	12,543,444	28,437,000
Shares issuable upon conversion of Series B2 Preferred	8,545,490	6,035,544	—
Shares issuable upon conversion of Series C1 Preferred	26,757,258	14,881,434	—
Shares issuable upon conversion of Series C2 Preferred	20,249,450	11,262,023	—
Shares issuable upon conversion of Series D1 Preferred	22,311,516	12,408,870	—
Shares issuable upon conversion of Series D2 Preferred	16,432,674	9,139,268	—
Shares issuable upon conversion of non-controlling interests of a subsidiary	17,253,182	9,595,605	—
Shares issuable upon vesting of Earn-out shares	—	8,821,913	19,999,988
Shares issuable that may be subject to cancellation	—	744,349	1,687,500

REVERSE RECAPITALIZATION - Schedule of Ownership Interests of the Company’s Stockholders (Details)	Jul. 23, 2021 shares
Reverse Recapitalization [Abstract]
Existing Microvast Equity Holders (in shares)	209,999,991
Existing Microvast Convertible Noteholders (in shares)	6,736,106
Tuscan public stockholders (in shares)	27,493,140
Sponsor Group (in share)	7,608,589
EarlyBirdCapital (in shares)	428,411
PIPE investors immediately after Merger (in shares)	48,250,000
Common Stock (in shares)	300,516,237
Shares subject to cancellation (in shares)	1,687,500

PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Prepaid Expense and Other Assets, Current [Abstract]
Advances to suppliers	$ 5,075	$ 7,102
Prepaid expenses	3,374	4,687
VAT receivables	2,408	4,106
Deposits	925	1,029
Other receivables	311	203
Total	$ 12,093	$ 17,127

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2022	Mar. 10, 2023	Jun. 30, 2022
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	001-38826
Entity Registrant Name	Microvast Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-2530757
Entity Address, Address Line One	12603 Southwest Freeway
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Stafford
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77477
City Area Code	(281)
Local Phone Number	491-9505
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 467.9
Entity Common Stock, Shares Outstanding		309,408,528
Entity Central Index Key	0001760689
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	MVST
Security Exchange Name	NASDAQ
Warrant
Entity Information [Line Items]
Title of 12(b) Security	Redeemable warrants, exercisable for shares of common stock at an exercise price of $11.50 per share
Trading Symbol	MVSTW
Security Exchange Name	NASDAQ

INVENTORIES, NET

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

INVENTORIES, NET

5. INVENTORIES, NET

Inventories consisted of the following:


	December 31, 2021		December 31, 2022
Work in process	$	20,760	$	48,747
Raw materials	25,266		29,331
Finished goods	7,398		6,174
Total	$	53,424	$	84,252

Provision for obsolete inventory of $1,343, $18,295 and $4,789 were recognized for the years ended December 31, 2020, 2021 and 2022, respectively, primarily related to inventory becoming obsolete as a result of technology development or product upgrade.

LAND USE RIGHTS, NET (Tables)

12 Months Ended

Dec. 31, 2022

Land and Land Improvements [Abstract]

Schedule of Land Use Rights

Land use rights consisted of the following:


	December 31, 2021		December 31, 2022
Cost of land use rights	$	16,390	$	15,143
Less: accumulated amortization	(2,382)		(2,504)
Land use rights, net	$	14,008	$	12,639

PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

7. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following:


	December 31, 2021		December 31, 2022
Machineries and equipment	$	150,519	$	140,160
Buildings	41,920		44,680
Leasehold improvements	30,035		28,625
Fixtures and electronic equipment	13,848		16,193
Motor vehicles	8,507		10,842
Total	244,829		240,500
Less: accumulated depreciation	(88,745)		(100,902)
Construction in progress	96,973		195,542
Property, plant and equipment, net	$	253,057	$	335,140

The Group recorded depreciation expenses of $16,097, $19,975 and $19,811 for the years ended December 31, 2020, 2021 and 2022, respectively. $567, $2,443 and $1,798 impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022, respectively

PRODUCT WARRANTY - Narrative (Details) $ in Thousands	12 Months Ended
PRODUCT WARRANTY - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Product Warranties Disclosures [Abstract]
Warrants expense	$ 46,485

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	28. COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Group may become involved in litigation, claims, and proceedings. The Group evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Group accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December 31, 2021 and 2022, based on the information currently available, the Group believes that the loss contingencies that may arise as a result of currently pending legal proceedings are not reasonably likely to have a material adverse effect on the Group’s business, results of operations, financial condition, and cash flows. Capital commitments Capital commitments for construction of property and purchase of property, plant and equipment were $227,353 as of December 31, 2022, which is mainly for the construction of capacity expansion projects in Huzhou, PRC and Clarksville, USA. Purchase Commitments Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $30,468 as of December 31, 2022.

SEGMENT INFORMATION - Narrative (Details)	12 Months Ended
SEGMENT INFORMATION - Narrative (Details)	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Operating segment	1
Reporting segment.	1

PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of the year		$ 58,458	$ 19,356	$ 18,416
Provided during the year	$ 14,097	52,932	3,477
Utilized during the year	(26,916)	(13,830)	(2,537)
Exchange difference	(3,579)	0	0
Balance at end of the year	42,060	58,458	19,356
Product warranty	13,044	20,922	4,296
Product warranty – non-current	$ 29,016	$ 37,536	$ 15,060

PROPERTY, PLANT AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 19,811	$ 19,975	$ 16,097
Recognized impairment loss of long lived assets	$ 1,798	$ 2,443	$ 567

LEASES - Narrative (Details) $ in Thousands	12 Months Ended
LEASES - Narrative (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
Operating lease, cost	$ 3,030
Short-term lease, cost	$ 373
Operating lease, weighted average remaining lease term	11 years 9 months 18 days
Operating lease, weighted average discount rate, percent	4.90%

LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Cash payments for operating leases	$ 3,063
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 548

SUBSEQUENT EVENTS (Details) - Subsequent Event	Jan. 31, 2023 shares
Restricted Stock Units (RSUs)
Subsequent Events (Details) [Line Items]
Number of shares available for grants (in shares)	1,406,150
Performance Based Restricted Stock Unit (PSU)
Subsequent Events (Details) [Line Items]
Number of shares available for grants (in shares)	1,406,150

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net loss	$ (158,200)	$ (206,483)	$ (33,625)
Adjustments to reconcile net loss to net cash generated from/(used in) operating activities:
Loss /(Gain) on disposal of property, plant and equipment	(14)	13	207
Depreciation of property, plant and equipment	19,811	19,975	16,097
Amortization of land use rights and intangible assets	554	738	695
Noncash lease expenses	2,214	0	0
Share-based compensation	90,808	82,894	0
Changes in fair value of warrant liability	(979)	(2,469)	0
Changes in fair value of Bridge Notes	0	9,861	0
(Reversal)/allowance of doubtful accounts	1,640	721	(240)
Provision for obsolete inventories	4,789	18,295	1,343
Impairment loss from property, plant and equipment	1,798	2,443	567
Product warranty	14,097	52,932	3,477
Changes in operating assets and liabilities:
Notes receivable	3,187	10,016	13,940
Accounts receivable	(38,924)	(11,844)	(3,599)
Inventories	(43,694)	(25,892)	13,611
Prepaid expenses and other current assets	3,628	(10,980)	(1,693)
Amounts due from/to related parties	85	(84)	1,872
Operating lease right-of-use assets	(19,375)	0	0
Other non-current assets	(282)	(2,135)	(139)
Notes payable	13,490	24,159	(1,643)
Accounts payable	7,146	(2,499)	3,818
Advance from customers	53,022	(971)	(1,395)
Accrued expenses and other liabilities	(24,674)	(5,947)	2,256
Operating lease liabilities	14,999	0	0
Other non-current liabilities	946	2,218	0
Income tax payables	0	0	7
Net cash generated from/(used in) operating activities	(53,928)	(45,039)	15,556
Cash flows from investing activities
Purchases of property, plant and equipment	(150,880)	(87,862)	(18,645)
Proceeds on disposal of property, plant and equipment	5	0	13
Purchase of short-term investments	(25,070)	0	(4,635)
Proceeds from maturity of short-term investments	0	0	5,593
Net cash used in investing activities	(175,945)	(87,862)	(17,674)
Cash flows from financing activities
Proceeds from bank borrowings	58,708	38,926	17,308
Repayment of bonds payable	(29,259)	0	0
Repayment of bank borrowings	(24,482)	(37,568)	(17,815)
Loans borrowing from related parties	0	8,426	18,889
Repayment of related party loans	0	(8,426)	(18,889)
Cash received from the trust account upon Merger, net of transaction costs (Note 3)	0	222,629	0
Cash received from Private Investment in Public Equity (“PIPE”) investors upon Merger (Note 3)	0	482,500	0
Payment to exited noncontrolling interests (Note 19)	0	(139,038)	0
Issuance of Bridge Notes (Note 14)	0	57,500	0
Net cash (used in)/generated from financing activities	4,967	624,949	(507)
Effect of exchange rate changes	(8,586)	2,865	2,037
(Decrease) Increase in cash, cash equivalents and restricted cash	(233,492)	494,913	(588)
Cash, cash equivalents and restricted cash at beginning of the year	536,109	41,196	41,784
Cash, cash equivalents and restricted cash at end of the year	302,617	536,109	41,196
Reconciliation to amounts on consolidated balance sheets
Cash and cash equivalents	231,420	480,931	21,496
Restricted cash	71,197	55,178	19,700
Total cash, cash equivalents and restricted cash	302,617	536,109	41,196
Supplemental disclosure of cash flow information
Interest paid	5,135	2,686	1,969
Income tax paid	0	0	0
Non-cash investing and financing activities
Payable for redemption of noncontrolling interest	0	0	124,316
Payable for purchase of property, plant and equipment	$ 29,183	$ 18,500	$ 15,122

BANK BORROWINGS

12 Months Ended

Dec. 31, 2022

Bank Borrowings [Abstract]

BANK BORROWINGS

12. BANK BORROWINGS

On September 27, 2022, the Group entered into a $111 million (RMB800 million) loan facilities agreement with a group of lenders led by a PRC Bank (the "2022 Facility Agreement"). The 2022 Facility Agreement has an effective drawdown period until June 9, 2023 and the interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC. The interest is payable on a quarterly basis. The loan facilities can only be used for the construction project of manufacturing capacity expansion at the Group’s facility located in Huzhou, China. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default.

As of December 31, 2022, the Group had outstanding borrowings of $43,496 under the 2022 Facility Agreement and the table below is the repayment schedule.


Repayment Date						Repayment Amount
June 10, 2023						$4,349 (RMB30 million)
December 10, 2023						$10,149 (RMB70 million)
June 10, 2024						$14,499 (RMB100 million)
December 10, 2024						$14,499 (RMB100 million)

The amount of interest expenses capitalized, which was recorded in the construction in progress and the property, plant and equipment, was $ nil and $492 as of December 31, 2021 and 2022, respectively.

The Group has also entered into short-term loan agreements and bank facilities with Chinese banks. The original terms of the loans from Chinese banks are within 12 months and the interest rates range from 4.50% to 4.75% per annum.

Changes in bank borrowings were as follows:


	Year Ended December 31,
	2020		2021		2022
Beginning balance	$	11,922	$	12,184	$	13,301
Proceeds from bank borrowings	17,308		38,926		58,708
Repayments of principal	(17,815)		(37,568)		(24,482)
Exchange difference	769		(241)		(1,132)
Ending balance	$	12,184	$	13,301	$	46,395


Balance of bank borrowings includes:	December 31, 2021		December 31, 2022
Current	$	13,301	$	17,398
Non-current	—		28,997
Total	$	13,301	$	46,395

Certain assets of the Group have been pledged to secure the above banking facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2021 and December 31, 2022 were as follows:


	December 31, 2021		December 31, 2022
Buildings	$	31,361	$	27,245
Machineries and equipment	7,376		—
Land use rights	4,470		12,639
Total	$	43,207	$	39,884

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 231,420	$ 480,931
Restricted cash, current	70,732	55,178
Short-term investments	25,070	0
Accounts receivable (net of allowance for doubtful accounts of $5,005 and $4,407 as of December 31, 2021 and 2022, respectively)	119,304	88,717
Notes receivable	2,196	11,144
Inventories, net	84,252	53,424
Prepaid expenses and other current assets	12,093	17,127
Amounts due from related parties	0	85
Total Current Assets	545,067	706,606
Restricted cash, non-current	465	0
Property, plant and equipment, net	335,140	253,057
Land use rights, net	12,639	14,008
Acquired intangible assets, net	1,636	1,882
Operating lease right-of-use assets	16,368	0
Other non-current assets	73,642	19,738
Total Assets	984,957	995,291
Current liabilities:
Accounts payable	44,985	40,408
Notes payable	68,441	60,953
Accrued expenses and other current liabilities	66,720	58,740
Advance from customers	54,207	1,526
Short-term bank borrowings	17,398	13,301
Income tax payables	658	666
Total Current Liabilities	252,409	175,594
Long-term bank borrowings	28,997	0
Long-term bonds payable	43,888	73,147
Warrant liability	126	1,105
Share-based compensation liability	131	18,925
Operating lease liabilities	14,347	0
Other non-current liabilities	32,082	39,822
Total Liabilities	371,980	308,593
Commitments and contingencies (Note 28)
Shareholders’ Equity
Common Stock (par value of US$0.0001 per share, 750,000,000 shares authorized as of December 31, 2021 and 2022; 300,530,516 and 309,316,011 shares issued, and 298,843,016 and 307,628,511 shares outstanding as of December 31, 2021 and 2022)	31	30
Additional paid-in capital	1,416,160	1,306,034
Statutory reserves	6,032	6,032
Accumulated deficit	(791,165)	(632,099)
Accumulated other comprehensive income (loss)	(18,081)	6,701
Total Shareholders’ Equity	612,977	686,698
Total Liabilities and Shareholders’ Equity	$ 984,957	$ 995,291

BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule of Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 73,147
Huzhou Saiyuan
Schedule of Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 73,147

PRODUCT WARRANTY (Tables)

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

Schedule of Movement of Product Warranty

Movement of product warranty was as follows:


	Year Ended December 31,
	2020		2021		2022
Balance at beginning of the year	$	18,416	$	19,356	$	58,458
Provided during the year	3,477		52,932		14,097
Utilized during the year	(2,537)		(13,830)		(26,916)
Exchange difference	$	—	$	—	$	(3,579)
Balance at end of the year	$	19,356	$	58,458	$	42,060
Product warranty – current	$	4,296	$	20,922	$	13,044
Product warranty – non-current	15,060		37,536		29,016

NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

NET LOSS PER SHARE

27. NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per share for the years indicated:


	Year Ended December 31,
	2020		2021		2022
Numerator:
Net loss attributable to Common Stock shareholders	$	(80,963)	$	(234,103)	$	(158,200)
Denominator:
Weighted average Common Stock outstanding used in computing basic and diluted net loss per share	99,028,297		185,896,482		303,279,188
Basic and diluted net loss per share	$	(0.82)	$	(1.26)	$	(0.52)


	Year ended December 31,
	2020	2021	2022
Shares issuable upon exercise of share options	18,281,198	33,786,356	35,244,877
Shares issuable upon vesting of non-vested shares	72,122	167,268	1,399,711
Shares issuable upon exercise of capped non-vested shares	—	—	7,314,598
Shares issuable upon exercise of warrants	—	12,543,444	28,437,000
Shares issuable upon conversion of Series B2 Preferred	8,545,490	6,035,544	—
Shares issuable upon conversion of Series C1 Preferred	26,757,258	14,881,434	—
Shares issuable upon conversion of Series C2 Preferred	20,249,450	11,262,023	—
Shares issuable upon conversion of Series D1 Preferred	22,311,516	12,408,870	—
Shares issuable upon conversion of Series D2 Preferred	16,432,674	9,139,268	—
Shares issuable upon conversion of non-controlling interests of a subsidiary	17,253,182	9,595,605	—
Shares issuable upon vesting of Earn-out shares	—	8,821,913	19,999,988
Shares issuable that may be subject to cancellation	—	744,349	1,687,500

NONCONTROLLING INTERESTS	12 Months Ended
NONCONTROLLING INTERESTS	Dec. 31, 2022
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS	19. NONCONTROLLING INTERESTS Noncontrolling interests of MPS In March 2017, Microvast, Inc. sold 17.39% equity interest of its wholly-owned subsidiary, MPS, to eight third-party investors (the “Investors”) for a total cash consideration of $400,000, which was received in 2017. In February 2018, Microvast, Inc. signed a series of repurchase and redemption agreements with six out of eight of these who requested to redeem in aggregate 14.05% equity interests in MPS (“Exiting Investors”), at a redemption value equal to the initial capital contribution plus 6.00% simple annual interest. To facilitate the repurchase and redemption transaction, MPS and the Exiting Investors entered into certain property mortgage agreements on May 30, 2018. As a result, the Group reclassified the outstanding balance of noncontrolling interest as liability (included in accrued expenses and other current liabilities and other non-current liabilities line items as payable to exiting investors) and measured at amortized cost. Pursuant to an extension agreement signed in September 2020, $30,000 was paid to the Exiting Investors in March 2021, and the remaining repayments were deferred to 2023 and thereafter, depending on the successful completion of a financing by the Company in 2022 or 2023. On August 31, 2021, an early repayment agreement was entered into between MPS and the Exiting Investors, pursuant to which the remaining amount was fully repaid to the Exiting Investors as of December 31, 2021. On July 23, 2021, upon the completion of the Merger between Microvast, Inc. and Tuscan, the equity interest held by the investors who remained noncontrolling shareholders of MPS were converted into 17,253,182 shares of Common Stock of the combined company as disclosed in Note 3. Noncontrolling interests of Microvast Inc. On December 19, 2022, Microvast Inc. and a third party set up a company named Microvast Precision Works Co., Ltd ("MPW"). The Company holds a 70% shareholding in MPW, and the third party holds 30%. The total registered capital of MPW is $7,246 which the shareholders will fund pro-rata to their shareholding. As of December 31, 2022, no investment was paid by any of parties and MPW had no operation.

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable from Customers (Details)	Dec. 31, 2022	Dec. 31, 2021
Customer A
Accounting Policies [Abstract]
Percentage of accounts receivable from customer	22.00%
Significant Accounting Policies [Line Items]
Percentage of accounts receivable from customer	22.00%
Customer B
Accounting Policies [Abstract]
Percentage of accounts receivable from customer		18.00%
Significant Accounting Policies [Line Items]
Percentage of accounts receivable from customer		18.00%

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Related Party Transactions


	Year Ended December 31,
	2020		2021		2022
Raw material sold to Ochem	$	167	$	390	$	—

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Long-lived Assets, Classified by Major Geographic Regions

Long-lived assets, classified by major geographic regions are as follows:


	December 31,			December 31,
Geographic regions	2021			2022
	Amount	%		Amount	%
PRC	211,139	79	%	233,202	67	%
Asia & Pacific	211,139	79	%	233,202	67	%
Germany	21,966	8	%	19,639	6	%
United Kingdom	67	0	%	66	0	%
Europe	22,033	8	%	19,705	6	%
United States	33,893	13	%	94,872	27	%
Total	267,065	100	%	347,779	100	%

Schedule of Assets and Revenues Major Geographic Regions

Revenues, classified by major geographic regions in which the Group’s customers are located are as follows:


	Year ended December 31,			Year ended December 31,			Year ended December 31,
Geographic regions	2020			2021			2022
	Amount	%		Amount	%		Amount	%
PRC	66,160	62	%	93,326	61	%	132,469	65	%
India	8,570	8	%	17,805	12	%	47,323	23	%
Russia	5,671	5	%	12,213	8	%	305	0	%
Other Asia & Pacific countries	2,254	2	%	8,172	5	%	4,938	2	%
Asia & Pacific	82,655	77	%	131,516	86	%	185,035	90	%
United Kingdom	11,544	11	%	11,386	7	%	3,976	2	%
Italy	5,965	6	%	3,140	2	%	6,389	3	%
Other European countries	6,805	6	%	5,016	4	%	5,444	3	%
Europe	24,314	23	%	19,542	13	%	15,809	8	%
United States	549	0	%	918	1	%	3,651	2	%
Total	107,518	100	%	151,976	100	%	204,495	100	%

BANK BORROWINGS - Schedule of Aggregate Carrying Amount of the Assets Pledged by the Group (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Bank Borrowings [Abstract]
Buildings	$ 27,245	$ 31,361
Machineries and equipment	0	7,376
Land use rights	12,639	4,470
Total	$ 39,884	$ 43,207

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (158,200)	$ (206,483)	$ (33,625)
Foreign currency translation adjustment	(24,782)	(655)	16,622
Comprehensive loss	(182,982)	(207,138)	(17,003)
Total comprehensive loss attributable to Microvast Holdings, Inc.	$ (182,982)	$ (207,138)	$ (17,003)

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Supplemental Cash Flow Information Related to Leases

COMMON STOCK - Narrative (Details)		12 Months Ended
COMMON STOCK - Narrative (Details)	Jul. 24, 2021 vote $ / shares shares	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 shares
Dividends, Common Stock [Abstract]
Authorized shares (in shares)		800,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001
Designated as common stock shares (in shares)		750,000,000
Designated as redeemable convertible preferred stock (in shares)		50,000,000
Common stock, shares issued (in shares)	300,516,237	309,316,011	300,530,516
Common stock, voting rights, number of votes \| vote	1
Common stock, shares outstanding (in shares)		307,628,511	298,843,016

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Supplemental cash flow information of the leases were as follows:


	Year Ended December 31, 2022
Cash payments for operating leases	$	3,063
Right-of-use assets obtained in exchange for new operating lease liabilities	$	548

Summary of the Lessee, Operating Lease, Liability, Maturity

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of December 31, 2022:


	As of December 31, 2022
2023	$	2,662
2024	2,050
2025	1,549
2026	1,497
2027	1,497
Thereafter	12,098
Total future lease payments	$	21,353
Less: Imputed interest	$	(5,072)
Present value of operating lease liabilities	$	16,281

Summary of Future Minimum Payments Under Non-cancellable Operating Leases

Future minimum payments under non-cancellable operating leases related to offices consisted of the following at December 31, 2021:


	December 31, 2021
2022	$	3,763
2023	3,151
2024	2,345
2025	1,879
2026	1,879
Thereafter	17,109
Total Lease Liabilities	$	30,126

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid Expenses and Other Current Assets


	December 31, 2021		December 31, 2022
Advances to suppliers	$	7,102	$	5,075
Prepaid expenses	4,687		3,374
VAT receivables	4,106		2,408
Deposits	1,029		925
Other receivables	203		311
Total	$	17,127	$	12,093

FAIR VALUE MEASUREMENT - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 231,420	$ 480,931
Restricted cash	71,197	55,178
Total financial asset	302,617	536,109
Warrant liability	126	1,105
Total financial liability	126	1,105
Quoted Prices in Active Market for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	231,420	480,931
Restricted cash	71,197	55,178
Total financial asset	302,617	536,109
Warrant liability	0	0
Total financial liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	0	0
Total financial liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	126	1,105
Total financial liability	$ 126	$ 1,105

PRODUCT WARRANTY

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY

11. PRODUCT WARRANTY

Movement of product warranty was as follows:


	Year Ended December 31,
	2020		2021		2022
Balance at beginning of the year	$	18,416	$	19,356	$	58,458
Provided during the year	3,477		52,932		14,097
Utilized during the year	(2,537)		(13,830)		(26,916)
Exchange difference	$	—	$	—	$	(3,579)
Balance at end of the year	$	19,356	$	58,458	$	42,060
Product warranty – current	$	4,296	$	20,922	$	13,044
Product warranty – non-current	15,060		37,536		29,016

Warranty provisions are based upon historical experience. Changes in provisions related to pre-existing legacy products were made based on actual claims and intensive testing and analysis on the legacy products. In 2021, as a result of the increases in the repairing cost and frequency of claims with respect to a legacy product sold in 2017 and 2018, the Company conducted intensive experiments and a root cause analysis, which was completed in October 2021. The Company concluded that a component purchased from a supplier was not meeting the Company’s performance standards. As a result, the Company determined that the impacted legacy products sold would need to be replaced before the expiration of the warranty term. This reassessment resulted in a change in estimate for additional accrual in 2021 of $46,485 relating to those legacy products. As the component was not incorporated into other products, no additional accrual was made to other existing products sold.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	29. SUBSEQUENT EVENTS New RSU and PSU Grants On January 31, 2023, the Company granted 1,406,150 RSUs and 1,406,150 PSUs to employees, subject to service and market conditions, respectively. The service condition requires the participant’s continued employment with the Company through the applicable vesting date(s), and the market condition is based on the Company's TSR relative to a comparator group during a specified performance period.

FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of December 31, 2021 and 2022, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follow:


	Fair Value Measurement as of December 31, 2021
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	480,931	—	—	$	480,931
Restricted cash	55,178		—	—	55,178
Total financial asset	$	536,109	—	—	$	536,109
Warrant liability	$	—	—	1,105	$	1,105
Total financial liability	$	—	—	1,105	$	1,105


	Fair Value Measurement as of December 31, 2022
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	231,420	—	—	$	231,420
Restricted cash	71,197		—	—	71,197
Total financial asset	$	302,617	—	—	$	302,617
Warrant liability	$	—	—	126	$	126
Total financial liability	$	—	—	126	$	126

Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following is a reconciliation of the beginning and ending balances for Level 3 Bridge Notes during the year ended December 31, 2021:


(In thousands)	Bridge Notes
Balance as of January 1, 2021	$	—
Issuance of Bridge Notes	57,500
Changes in fair value of Bridge Notes	9,861
Conversion as of Merger	(67,361)
Balance as of December 31, 2021	$	—

Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the year ended December 31, 2021 and 2022:


(In thousands)	Year Ended December 31,
	2021		2022
Balance at the beginning of the year	$	—	$	1,105
Assumed warrant liability upon Merger	3,574		—
Changes in fair value	(2,469)		(979)
Balance at end of the year	$	1,105	$	126

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

MAINLAND CHINA CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Total provisions of employee benefits	$ 3,370	$ 2,774	$ 2,192

BANK BORROWINGS - Narrative (Details) $ in Thousands, ¥ in Millions		12 Months Ended
	Sep. 27, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 27, 2022 CNY (¥)
Debt Instrument [Line Items]
Interest costs capitalized		$ 492	$ 0
Minimum
Debt Instrument [Line Items]
Long-term debt, percentage bearing variable interest, percentage rate		4.50%
Maximum
Debt Instrument [Line Items]
Long-term debt, term		12 months
Long-term debt, percentage bearing variable interest, percentage rate		4.75%
Syndicated Loan Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 111,000			¥ 800
Proceeds from lines of credit		$ 43,496
Syndicated Loan Agreement \| National Interbank Funding Center Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.15%

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF OPERATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Financial Information Disclosure [Line Items]
Revenues from subsidiaries	$ 204,495	$ 151,976	$ 107,518
Gross profit	9,073	(42,743)	17,140
Operating expenses:
General and administrative expenses	(104,572)	(101,632)	(18,849)
Total operating expenses	(170,691)	(157,448)	(49,247)
Subsidy income	1,672	6,127	3,000
Loss from operations	(159,946)	(194,064)	(29,107)
Other income and expenses:
Interest income	3,179	446	571
Loss on changes in fair value of Bridge Notes	0	(9,861)	0
Gain on changes in fair value of warrant liability	979	2,469	0
Other expense, net	944	(62)	650
Income tax expense	(33)	0	(1)
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustment	(24,782)	(655)	16,622
Parent Company
Condensed Financial Information Disclosure [Line Items]
Revenues from subsidiaries	0	0	199
Gross profit	0	0	199
Operating expenses:
General and administrative expenses	(2,438)	(2,424)	(3,340)
Total operating expenses	(2,438)	(2,424)	(3,340)
Subsidy income	0	0	224
Loss from operations	(2,438)	(2,424)	(2,917)
Other income and expenses:
Interest income	2,179	10	38
Loss on changes in fair value of Bridge Notes	0	(9,861)	0
Gain on changes in fair value of warrant liability	979	2,469	0
Other expense, net	0	59	0
Loss before income tax	720	(9,747)	(2,879)
Income tax expense	0	0	0
Loss from investment in subsidiaries	(158,920)	(196,736)	(30,746)
Net loss	(158,200)	(206,483)	(33,625)
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustment	(24,782)	(655)	16,622
Total comprehensive loss attributable to Microvast Holdings, Inc.	$ (182,982)	$ (207,138)	$ (17,003)

ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Annual Amortization Expense (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 243
2024	237
2025	233
2026	231
2027	231
Thereafter	461
Total	$ 1,636

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Inventories
Loss Contingencies [Line Items]
Purchase obligation	$ 30,468
Capital addition purchase commitments
Loss Contingencies [Line Items]
Capital commitments	$ 227,353

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive (loss)/income	Statutory reserve
Beginning balance (in shares) at Dec. 31, 2019		99,028,297
Beginning balance at Dec. 31, 2019	$ (320,261)	$ 6	$ 3,727	$ (320,760)	$ (9,266)	$ 6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(33,625)			(33,625)
Accretion for Series C1 Preferred	(3,897)		(3,727)	(170)
Accretion for Series C2 Preferred	(8,866)			(8,866)
Accretion for Series D1 Preferred	(18,648)			(18,648)
Accretion for the exiting noncontrolling interests	(5,668)			(5,668)
Foreign currency translation adjustments	16,622				16,622
Accretion of redeemable noncontrolling interests	(10,259)			(10,259)
Ending balance (in shares) at Dec. 31, 2020		99,028,297
Ending balance at Dec. 31, 2020	(384,602)	$ 6	0	(397,996)	7,356	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(206,483)			(206,483)
Accretion for Series C1 Preferred	(2,257)			(2,257)
Accretion for Series C2 Preferred	(5,132)			(5,132)
Accretion for Series D1 Preferred	(10,708)			(10,708)
Accretion for redeemable noncontrolling interests	(5,841)			(5,841)
Accretion for the exiting noncontrolling interests	(3,682)			(3,682)
Issuance of common stock upon the reverse recapitalization, net of issuance costs (Note 3) (in shares)		191,254,950
Issuance of common stock upon the reverse recapitalization, net of issuance costs (Note 3)	1,241,851	$ 23	1,241,828
Issuance of common stock in connection with vesting of restricted stock units and stock options (including the conversion and vesting of Series B2 preferred) (in shares)		8,559,769
Issuance of common stock in connection with vesting of restricted stock units and stock options (including the conversion and vesting of Series B2 preferred)	39,533	$ 1	39,532
Share-based compensation(Note 22)	24,674		24,674
Foreign currency translation adjustments	(655)				(655)
Ending balance (in shares) at Dec. 31, 2021		298,843,016
Ending balance at Dec. 31, 2021	686,698	$ 30	1,306,034	(632,099)	6,701	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(158,200)			(158,200)
Issuance of common stock in connection with vesting of share-based awards (in shares)		8,785,495
Issuance of common stock in connection with vesting of share-based awards	0	$ 1	(1)
Share-based compensation(Note 22)	110,127		110,127
Foreign currency translation adjustments	(24,782)				(24,782)
Ending balance (in shares) at Dec. 31, 2022		307,628,511
Ending balance at Dec. 31, 2022	$ 612,977	$ 31	$ 1,416,160	$ (791,165)	$ (18,081)	$ 6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]

BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions													12 Months Ended
	Jan. 31, 2027 USD ($)	Jan. 31, 2027 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Nov. 10, 2022 USD ($)	Nov. 10, 2022 CNY (¥)	Jul. 23, 2021 shares	Jan. 04, 2021 USD ($)	Dec. 29, 2018 USD ($)	Dec. 29, 2018 CNY (¥)	Nov. 02, 2018 USD ($)	Nov. 02, 2018 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2022 CNY (¥)	Jun. 30, 2022	Dec. 31, 2020 CNY (¥)
Bonds Payable [Line Items]
Bond loan									$ 87,776	¥ 600.0
Equity holding pledged percentage									12.39%	12.39%
Subscribed amount (in dollars and yuan renminbi)			$ 43,888										$ 43,888			¥ 300.0
Debt instrument, convertible amount, subsidiary value threshold													$ 950,000
Repayments of convertible debt (in dollars and yuan renminbi)			$ 14,630	¥ 100.0	$ 14,629	¥ 100.0
Debt instrument, interest rate, stated percentage			12.00%										12.00%			12.00%
Long term bonds payable			$ 43,888										$ 43,888	$ 73,147
Aggregate amount of bond loan											$ 73,147	¥ 500.0
Subscribed by bond holders															$ 29,915			¥ 204.5
Shares of common stock (in shares) \| shares							6,719,845
Purchase agreement to issue convertible promissory note amount								$ 57,500
Interest rate																	6.00%
Loss on changes In fair value of convertible notes													$ 0	$ 9,861	$ 0
Convertible promissory notes converted common stock shares (in shares) \| shares							6,736,106
CL Investors
Bonds Payable [Line Items]
Aggregate amount of bond loan											$ 58,516	¥ 400.0
Forecast
Bonds Payable [Line Items]
Repayments of convertible debt (in dollars and yuan renminbi)	$ 43,888	¥ 300.0

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Jul. 24, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 4,407	$ 5,005
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	309,316,011	300,530,516	300,516,237
Common stock, shares outstanding (in shares)	307,628,511	298,843,016

NET LOSS PER SHARE - Schedule of Outstanding were Excluded from the Calculation of Diluted Net Loss per Ordinary Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net Loss Per Share [Line Items]
Shares issuable upon exercise of stock options (in shares)	35,244,877	33,786,356	18,281,198
Shares issuable upon vesting of non-vested shares (in shares)	1,399,711	167,268	72,122
Shares Issuable Upon Exercise Of Capped Non-vested Shares	7,314,598	0	0
Shares issuable upon exercise of warrants (in shares)	28,437,000	12,543,444	0
Shares issuable upon conversion of non-controlling interests of a subsidiary (in shares)	0	9,595,605	17,253,182
Shares issuable upon vesting of Earn-out shares (in shares)	19,999,988	8,821,913	0
Shares issuable that may be subject to cancellation (in shares)	1,687,500	744,349	0
Shares issuable upon conversion of Series B2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	6,035,544	8,545,490
Shares issuable upon conversion of Series C1 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	14,881,434	26,757,258
Shares issuable upon conversion of Series C2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	11,262,023	20,249,450
Shares issuable upon conversion of Series D1 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	12,408,870	22,311,516
Shares issuable upon conversion of Series D2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	9,139,268	16,432,674

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

12 Months Ended

Dec. 31, 2022

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Microvast, Inc. was incorporated under the laws of the State of Texas in the United States of America (“USA”) on October 12, 2006 and re-domiciled to the State of Delaware on December 31, 2015. Microvast Inc. and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles and energy storage across the globe, with its primary markets and operations in the People’s Republic of China (“PRC”), Europe and the United States.

On July 23, 2021 (the “Closing Date”), Microvast, Inc. and Tuscan Holdings Corp.(“Tuscan”) consummated the previously announced merger (the “Merger”), pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”).

Pursuant to the Merger Agreement, the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” (the “Company”). The Merger was accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). Please refer to Note 3 “Reverse Recapitalization” for further details of the Merger.

Upon the completion of the Merger transaction between Microvast, Inc. and Tuscan, the share, per share value and net loss per share available to Microvast Inc.’s common stockholders in the financial statements for each of the two years ended December 31, 2021 were retroactively recast to reflect the exchange ratio established in the Merger Agreement. Refer to Note 3 for details.

As of December 31, 2022, details of the Company’s major subsidiaries are as follows:

Subsidiaries

Place of incorporation

Date of
incorporation
or acquisition

Percentage
of ownership

Microvast, Inc. (“Microvast”)

Delaware, USA

October 2006

100

Microvast Power Solutions, Inc (“MP Solutions”)

Texas, USA

July 2013

100

Microvast Power Systems Co., Ltd. (“MPS”)

Huzhou, PRC

December 2006

100

Microvast GmbH (“MV GmbH”)

Germany

May 2016

100

Huzhou Hongwei New Energy Automobile Co., Ltd. (“Hongwei”)

Huzhou, PRC

December 2016

100

Microvast Energy, Inc. (“MV Energy”)

Colorado, USA

July 2022

100

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor location	Beijing, the People’s Republic of China
Auditor firm ID	1113

WARRANTS

12 Months Ended

Dec. 31, 2022

Warrants [Abstract]

WARRANTS

15. WARRANTS

Upon the Merger, the Company assumed 27,600,000 publicly-traded warrants (“Public Warrants”) which were issued in connection with Tuscan’s initial public offering. The Company also assumed 837,000 private placement warrants issued to the Sponsor and EarlyBirdCapital, Inc. (“EarlyBirdCapital”) (“Private Warrants” and together with the Public Warrants, the “Warrants”) upon the Merger, all of which were issued in connection with Tuscan’s initial public offering (other than 150,000 Private Warrants that were issued in connection with the closing of the Merger). The Warrants entitle the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share. During the year ended December 31, 2022, none of the Public Warrants or the Private Warrants have been exercised.

The Public Warrants became exercisable 30 days after the completion of the Merger. No Warrants were exercisable for cash until the Company registered Common Stock issuable upon exercise of the Warrants with the SEC. Since the registration of Common Stock was not completed within 90 days following the Merger, warrant holders were able to exercise the Warrants on a net-share settlement basis until the registration statement became effective on June 8, 2022. The Public Warrants will expire five years after the completion of the Merger or earlier upon redemption or liquidation.

Once the Public Warrants became exercisable, the Company may redeem the Public Warrants:

•in whole and not in part;

•at a price of $0.01 per warrant;

•upon not less than 30 days’ prior written notice of redemption;

•if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and

•if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a net-share settlement basis.

The Public Warrant was determined to be equity classified in accordance with ASC 815, Derivatives and Hedging.

The Private Warrants are identical to the Public Warrants, except that the Private Warrants will be exercisable for cash or on a net-share settlement basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. In addition, so long as the Private Warrants are held by EarlyBirdCapital and its designee, the Private Warrants will expire five years from the effective date of the Merger.

The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants.

The Private Warrant liability was measured at fair value, resulting in gains of $2,469 and $979 for the years ended December 31, 2021and December 31, 2022, respectively. This was classified within changes in fair value of warrant liability in the consolidated statements of operations.

The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:


	December 31, 2022
Market price of public stock	$	1.53
Exercise price	$	11.50
Expected term (years)	3.57
Volatility	69.80		%
Risk-free interest rate	4.06		%
Dividend rate	0.00		%

The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is a blend of implied volatility from the Company’s own public warrant pricing and the average volatility of peer companies. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Net Revenues from Customers (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Customer A
Significant Accounting Policies [Line Items]
Percentage of revenue contribution	12.00%	11.00%

FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

16. FAIR VALUE MEASUREMENT

Measured or disclosed at fair value on a recurring basis

The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash, Bridge Notes and warrant liability at fair value on a recurring basis as of December 31, 2021 and 2022. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability and Bridge Notes are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 15.


	Fair Value Measurement as of December 31, 2021
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	480,931	—	—	$	480,931
Restricted cash	55,178		—	—	55,178
Total financial asset	$	536,109	—	—	$	536,109
Warrant liability	$	—	—	1,105	$	1,105
Total financial liability	$	—	—	1,105	$	1,105


	Fair Value Measurement as of December 31, 2022
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	231,420	—	—	$	231,420
Restricted cash	71,197		—	—	71,197
Total financial asset	$	302,617	—	—	$	302,617
Warrant liability	$	—	—	126	$	126
Total financial liability	$	—	—	126	$	126

Measured or disclosed at fair value on a recurring basis-continued

The following is a reconciliation of the beginning and ending balances for Level 3 Bridge Notes during the year ended December 31, 2021:


(In thousands)	Bridge Notes
Balance as of January 1, 2021	$	—
Issuance of Bridge Notes	57,500
Changes in fair value of Bridge Notes	9,861
Conversion as of Merger	(67,361)
Balance as of December 31, 2021	$	—

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the year ended December 31, 2021 and 2022:


(In thousands)	Year Ended December 31,
	2021		2022
Balance at the beginning of the year	$	—	$	1,105
Assumed warrant liability upon Merger	3,574		—
Changes in fair value	(2,469)		(979)
Balance at end of the year	$	1,105	$	126

Measured or disclosed at fair value on a nonrecurring basis

The Group measured the long-lived assets using the income approach—discounted cash flow method, when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Goodwill and Intangible Assets Disclosure [Abstract]

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property, Plant and Equipment are Carried at Cost Less Accumulated Depreciation (Details)	12 Months Ended
	Dec. 31, 2022
Buildings
Public Utility, Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	20 years
Machineries and equipment
Public Utility, Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	10 years
Motor vehicles
Public Utility, Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years
Minimum \| Fixtures and electronic equipment
Public Utility, Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	4 years
Maximum \| Fixtures and electronic equipment
Public Utility, Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years

ACQUIRED INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

ACQUIRED INTANGIBLE ASSETS, NET

9. ACQUIRED INTANGIBLE ASSETS, NET


	December 31, 2021		December 31, 2022
Cost of acquired intangible assets	$	4,104	$	3,493
Less: accumulated amortization	(2,222)		(1,857)
Acquired intangible assets, net	$	1,882	$	1,636

The Group recorded amortization expense of $392, $413 and $244 for the years ended December 31, 2020, 2021 and 2022, respectively. No impairment losses were recognized for the years ended December 31, 2020, 2021 and 2022.

The annual amortization expense for each of the five succeeding fiscal years and thereafter are as follows:


2023	$	243
2024	237
2025	233
2026	231
2027	231
Thereafter	461
Total	$	1,636

NET LOSS PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss attributable to Common Stock shareholders	$ (158,200)	$ (234,103)	$ (80,963)
Denominator:
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	303,279,188	185,896,482	99,028,297
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	303,279,188	185,896,482	99,028,297
Basic (in dollars per share)	$ (0.52)	$ (1.26)	$ (0.82)
Diluted (in dollars per share)	$ (0.52)	$ (1.26)	$ (0.82)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Other Liabilities, Noncurrent [Abstract]

INVENTORIES, NET (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following:


	December 31, 2021		December 31, 2022
Work in process	$	20,760	$	48,747
Raw materials	25,266		29,331
Finished goods	7,398		6,174
Total	$	53,424	$	84,252

NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	1 Months Ended	10 Months Ended
NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	Feb. 28, 2018	Dec. 31, 2017	Dec. 19, 2022	Jul. 23, 2021	Mar. 31, 2021	Mar. 31, 2017
Noncontrolling Interest [Line Items]
Percentage of equity interest						17.39%
Cash consideration received		$ 400,000
Redemption of noncontrolling equity interest percentage	14.05%
Simple annual interest percentage	6.00%
Group paid capital					$ 30,000
Convertible of common shares (in shares)				17,253,182
Investments in affiliates subsidiaries associates and joint venture			$ 7,246
Microvast Precision Works Co.
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by parent			70.00%
Third-party investors
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners			30.00%

OTHER NON-CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Other Non-Current Liabilities


	December 31, 2021		December 31, 2022
Product warranty - non-current	$	37,536	29,016
Deferred subsidy income- non-current	2,286		3,066
Total	$	39,822	$	32,082

LAND USE RIGHTS, NET - Schedule of Land Use Rights (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Land and Land Improvements [Abstract]
Cost of land use rights	$ 15,143	$ 16,390
Less: accumulated amortization	(2,504)	(2,382)
Land use rights, net	$ 12,639	$ 14,008

WARRANTS (Tables)

12 Months Ended

Dec. 31, 2022

Warrants [Abstract]

Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option

The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:


	December 31, 2022
Market price of public stock	$	1.53
Exercise price	$	11.50
Expected term (years)	3.57
Volatility	69.80		%
Risk-free interest rate	4.06		%
Dividend rate	0.00		%

SEGMENT INFORMATION - Schedule of Assets and Revenues Major Geographic Regions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 204,495	$ 151,976	$ 107,518
Revenues, percentage	100.00%	100.00%	100.00%
Asia & Pacific
Disaggregation of Revenue [Line Items]
Revenues	$ 185,035	$ 131,516	$ 82,655
Revenues, percentage	90.00%	86.00%	77.00%
PRC
Disaggregation of Revenue [Line Items]
Revenues	$ 132,469	$ 93,326	$ 66,160
Revenues, percentage	65.00%	61.00%	62.00%
India
Disaggregation of Revenue [Line Items]
Revenues	$ 47,323	$ 17,805	$ 8,570
Revenues, percentage	23.00%	12.00%	8.00%
Russia
Disaggregation of Revenue [Line Items]
Revenues	$ 305	$ 12,213	$ 5,671
Revenues, percentage	0.00%	8.00%	5.00%
Other Asia & Pacific countries
Disaggregation of Revenue [Line Items]
Revenues	$ 4,938	$ 8,172	$ 2,254
Revenues, percentage	2.00%	5.00%	2.00%
Europe
Disaggregation of Revenue [Line Items]
Revenues	$ 15,809	$ 19,542	$ 24,314
Revenues, percentage	8.00%	13.00%	23.00%
United Kingdom
Disaggregation of Revenue [Line Items]
Revenues	$ 3,976	$ 11,386	$ 11,544
Revenues, percentage	2.00%	7.00%	11.00%
Italy
Disaggregation of Revenue [Line Items]
Revenues	$ 6,389	$ 3,140	$ 5,965
Revenues, percentage	3.00%	2.00%	6.00%
Other European countries
Disaggregation of Revenue [Line Items]
Revenues	$ 5,444	$ 5,016	$ 6,805
Revenues, percentage	3.00%	4.00%	6.00%
United States
Disaggregation of Revenue [Line Items]
Revenues	$ 3,651	$ 918	$ 549
Revenues, percentage	2.00%	1.00%	0.00%

RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Raw material sold to Ochem	$ 0	$ 390	$ 167

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

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Other Liabilities, Noncurrent [Abstract]

OTHER NON-CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

OTHER NON-CURRENT LIABILITIES

13. OTHER NON-CURRENT LIABILITIES


	December 31, 2021		December 31, 2022
Product warranty - non-current	$	37,536	29,016
Deferred subsidy income- non-current	2,286		3,066
Total	$	39,822	$	32,082

REVERSE RECAPITALIZATION - Narrative (Details)	Jul. 23, 2021 USD ($) $ / shares shares
Reverse Recapitalization [Line Items]
Net proceeds \| $	$ 705,129,000
Cash held in Tuscan’s trust account \| $	281,726,000
Transaction costs \| $	$ 58,175,000
Escrow shares (in shares)	1,687,500
Reverse recapitalization, contingent consideration, cancellation period, escrow share percentage	50.00%
Common Stock
Reverse Recapitalization [Line Items]
Reverse recapitalization, contingent consideration, shares (in shares)	19,999,988
Reverse recapitalization, contingent consideration, earnout period, stock price trigger (in dollars per share) \| $ / shares	$ 18.00
Reverse recapitalization, contingent consideration, earnout period, threshold trading days	20 days
Reverse recapitalization, contingent consideration, earnout period, threshold trading day period	30 days
Reverse recapitalization, exchange ratio	160.3
Common Stock \| Escrow Shares Tranche One
Reverse Recapitalization [Line Items]
Reverse recapitalization, contingent consideration, cancellation period, stock price trigger (in dollars per share) \| $ / shares	$ 12.00
Common Stock \| Escrow Shares Tranche Two
Reverse Recapitalization [Line Items]
Reverse recapitalization, contingent consideration, cancellation period, stock price trigger (in dollars per share) \| $ / shares	$ 15.00
Microvast, Inc. (“Microvast”) \| Common Stock
Reverse Recapitalization [Line Items]
Shares issued (in shares)	209,999,991
Bridge Notes
Reverse Recapitalization [Line Items]
Outstanding promissory notes issued \| $	$ 57,500
Bridge Notes \| Common Stock
Reverse Recapitalization [Line Items]
Shares issued (in shares)	6,736,106
PIPE Investors \| Common Stock
Reverse Recapitalization [Line Items]
Shares issued (in shares)	48,250,000
Exercise price (in dollars per share) \| $ / shares	$ 10.00
Sale of stock, consideration received on transaction \| $	$ 482,500,000
Sponsor
Reverse Recapitalization [Line Items]
Shares of common stock (in shares)	150,000
Conversion of notes payable \| $	$ 1,500,000
Sponsor \| Common Stock
Reverse Recapitalization [Line Items]
Shares of common stock (in shares)	150,000
Class of warrant or right, number of securities called by warrants or rights (in shares)	150,000
Warrant exercise price (in dollars per share) \| $ / shares	$ 11.50
CL Investors \| Common Stock
Reverse Recapitalization [Line Items]
Reverse recapitalization, contingent consideration exchange, shares (in shares)	6,719,845
MPS Minority Investors \| Common Stock
Reverse Recapitalization [Line Items]
Reverse recapitalization, contingent consideration exchange, shares (in shares)	17,253,182
Tuscan Public Stockholders
Reverse Recapitalization [Line Items]
Transaction costs \| $	$ 922,000

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS

(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)


	December 31, 2021		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	357,008	$	99,337
Short-term investment	—		25,070
Amount due from subsidiaries	—		2,000
Total Current Assets	357,008		126,407
Investments in subsidiaries	690,032		592,264
Total Assets	$	1,047,040	$	718,671

Liabilities
Current liabilities:
Amount due to inter-company	359,202		105,533
Accrued expenses and other current liabilities	35		35
Total Current Liabilities	359,237		105,568
Warrant liability	1,105		126
Total Liabilities	$	360,342	$	105,694

Shareholders’ Deficit
Common Stock (par value of US$0.0001 per share, 750,000,000 shares authorized as of December 31, 2021 and 2022; 300,530,516 and 309,316,011 shares issued, and 298,843,016 and 307,628,511 shares outstanding as of December 31, 2021 and 2022)	$	30	$	31
Additional paid-in capital	1,306,034		1,416,160
Statutory reserves	6,032		6,032
Accumulated deficit	(632,099)		(791,165)
Accumulated other comprehensive income (loss)	6,701		(18,081)
Total Shareholders’ Equity	686,698		612,977
Total Liabilities and Shareholders’ Equity	$	1,047,040	$	718,671

The accompanying notes are an integral part of these consolidated financial statements.

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENT OF OPERATIONS

(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)


	Year Ended December 31,
	2020		2021		2022
Revenues from subsidiaries	$	199	$	—	$	—
Gross profit	199		—		—

Operating expenses:
General and administrative expenses	(3,340)		(2,424)		(2,438)
Total operating expenses	(3,340)		(2,424)		(2,438)
Subsidy income	224		—		—
Loss from operations	(2,917)		(2,424)		(2,438)

Other income and expenses:
Interest income	38		10		2,179
Loss on changes in fair value of Bridge Notes	—		(9,861)		—
Gain on change in fair value of warrant liability	—		2,469		979
Other expense, net	—		59		—
(Loss) income before provision for income taxes	(2,879)		(9,747)		720
Income tax expense	—		—		—
Loss from investment in subsidiaries	(30,746)		(196,736)		(158,920)
Net loss	$	(33,625)	$	(206,483)	$	(158,200)
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustment	16,622		(655)		(24,782)
Total comprehensive loss attributable to Microvast Holdings, Inc.	$	(17,003)	$	(207,138)	$	(182,982)

The accompanying notes are an integral part of these consolidated financial statements.

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENT OF CASH FLOWS

(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)


	Year Ended December 31,
	2020		2021		2022
Net cash used in operating activities	(3,398)		(2,846)		(4,498)
Cash flows from investing activities
Purchases of property, plant and equipment	(380)		(18,465)		—
Investment in subsidiaries	—		(354,014)		(255,662)
Purchases of short-term investment	—		—		(25,070)
Net cash used in investing activities	(380)		(372,479)		(280,732)
Cash flows from financing activities
Cash received from the trust account upon Merger, net of transaction costs	—		223,605		—
Cash received from PIPE investors upon Merger	—		482,500		—
Issuance of Bridge Notes	—		57,500		—
Payment to exited noncontrolling interests	—		(32,872)		—
Cash received from shareholders	—		—		27,559
Net cash generated from financing activities	—		730,733		27,559
(Decrease)/increase in cash, cash equivalents and restricted cash	(3,778)		355,408		(257,671)
Cash, cash equivalents and restricted cash at beginning of the period	5,378		1,600		357,008
Cash, cash equivalents and restricted cash at end of the period	$	1,600	$	357,008	$	99,337

The accompanying notes are an integral part of these consolidated financial statements.

1. BASIS FOR PREPARATION

The financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company has used the equity method to account for investments in its subsidiaries.

On July 23, 2021, Tuscan Holdings Corp. consummated the Merger with Microvast, Inc. pursuant to the Merger agreement dated February 1, 2021, with Microvast, Inc. surviving from the Merger. As a result of the Merger, Tuscan Holdings Corp. was renamed “Microvast Holdings, Inc.” The Merger transaction is accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer. As such, the historical consolidated comparative information as of and for the year ended December 31, 2020 in this Schedule I relates to Microvast, Inc. The shares issued and outstanding prior to the completion of the Merger has been retroactively adjusted to give effect to the exchange ratio established in the Merger Agreement.

2. INVESTMENTS IN SUBSIDIARIES

The Company and its subsidiaries were included in the consolidated financial statements where the inter-company transactions and balances were eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income from its subsidiaries were reported as equity in earnings of subsidiaries in the accompanying parent company financial statements.

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the year	$ 1,105,000	$ 0
Assumed warrant liability upon Merger	0	3,574,000
Changes in fair value	(979,000)	(2,469,000)
Balance at end of the year	$ 126,000	$ 1,105,000
Fair value recurring basis unobservable input reconciliation liability gain loss statement of income extensible list not disclosed flag	true	true

BANK BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2022

Bank Borrowings [Abstract]

Schedule of Bank Borrowings Repayment


Repayment Date						Repayment Amount
June 10, 2023						$4,349 (RMB30 million)
December 10, 2023						$10,149 (RMB70 million)
June 10, 2024						$14,499 (RMB100 million)
December 10, 2024						$14,499 (RMB100 million)

Schedule of Bank Borrowings

Changes in bank borrowings were as follows:


	Year Ended December 31,
	2020		2021		2022
Beginning balance	$	11,922	$	12,184	$	13,301
Proceeds from bank borrowings	17,308		38,926		58,708
Repayments of principal	(17,815)		(37,568)		(24,482)
Exchange difference	769		(241)		(1,132)
Ending balance	$	12,184	$	13,301	$	46,395


Balance of bank borrowings includes:	December 31, 2021		December 31, 2022
Current	$	13,301	$	17,398
Non-current	—		28,997
Total	$	13,301	$	46,395

Schedule of Aggregate Carrying Amount of the Assets Pledged by the Group

The aggregate carrying amount of the assets pledged by the Group as of December 31, 2021 and December 31, 2022 were as follows:


	December 31, 2021		December 31, 2022
Buildings	$	31,361	$	27,245
Machineries and equipment	7,376		—
Land use rights	4,470		12,639
Total	$	43,207	$	39,884

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities and Other Liabilities [Abstract]
Product warranty	$ 13,044	$ 20,922	$ 4,296
Payables for purchase of property, plant and equipment	29,183	18,500
Other current liabilities	8,608	10,636
Accrued payroll and welfare	4,716	3,476
Accrued expenses	2,641	2,444
Interest payable	298	1,836
Operating lease liabilities, current	1,934	0
Other tax payable	6,296	926
Total	$ 66,720	$ 58,740
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total	Total

SHARE-BASED PAYMENT - Schedule of Stock Option Activity Plan (Details) - $ / shares		12 Months Ended
	Jun. 27, 2022	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend yields		0.00%
Share Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)		6 years
Volatility rate, minimum		56.16%
Volatility rate, maximum		57.84%
Risk-free interest rate, minimum		2.79%
Risk-free interest rate, maximum		3.02%
Share Options \| Binomial-Lattice Model
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Volatility rate, minimum			47.60%
Volatility rate, maximum			53.10%
Risk-free interest rate, minimum			1.26%
Risk-free interest rate, maximum			1.87%
Expected dividend yields			0.00%
Capped Non-vested Shares Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Volatility rate, minimum	50.93%
Volatility rate, maximum	73.89%
Risk-free interest rate, minimum	1.15%
Risk-free interest rate, maximum	3.05%
Expected dividend yields	0.00%
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)		2 years 8 months 4 days
Volatility		59.50%
Volatility rate, minimum			63.06%
Volatility rate, maximum			64.31%
Risk-free interest rate, minimum			0.31%
Risk-free interest rate, maximum			0.55%
Risk-free interest rate		2.72%
Expected dividend yields		0.00%	0.00%
Minimum \| Share Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price (in dollars per share)		$ 2.42
Weighted average fair value of options granted (in dollars per share)		1.33
Minimum \| Share Options \| Binomial-Lattice Model
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 4.37
Expected terms (years)			4 years 6 months
Weighted average fair value of options modified (in dollars per share)			$ 4.70
Minimum \| Capped Non-vested Shares Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)	25 days
Minimum \| Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)			2 years 2 months 4 days
Maximum \| Share Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price (in dollars per share)		5.69
Weighted average fair value of options granted (in dollars per share)		$ 3.19
Maximum \| Share Options \| Binomial-Lattice Model
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 6.28
Expected terms (years)			9 years 4 months 24 days
Weighted average fair value of options modified (in dollars per share)			$ 5.36
Maximum \| Capped Non-vested Shares Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)	2 years 25 days
Maximum \| Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected terms (years)			2 years 4 months 6 days

SHARE-BASED PAYMENT - Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Number of shares, outstanding at beginning (in shares)	33,503,657
Number on non-vested shares, grant (in shares)	2,900,000
Number of shares, forfeited (in shares)	(312,586)
Number of shares, outstanding at ending (in shares)	36,091,071	33,503,657
Number of shares, expected to vest and exercisable (in shares)	36,091,071
Number of shares, exercisable (in shares)	11,875,830
Weighted Average Exercise Price (US$)
Weighted average exercise price, outstanding at beginning (in dollars per share)	$ 6.19
Weighted average grant date fair value per share, non-vested shares, grant (in dollars per share)	4.81
Weighted average exercise price, forfeited (in dollars per share)	6.28
Weighted average exercise price, outstanding at ending (in dollars per share)	6.08	$ 6.19
Weighted average exercise price, expected to vest and exercisable (in dollars per share)	6.08
Weighted average exercise price, exercisable (in dollars per share)	6.20
Weighted Average Grant Date Fair Value (US$)
Weighted average grant date fair value, outstanding at beginning (in dollars per share)	4.95
Weighted average grant date fair value, granted (in dollars per share)	2.69
Weighted average grant date fair value, forfeited (in dollars per share)	4.87
Weighted average grant date fair value, outstanding at ending (in dollars per share)	4.80	$ 4.95
Weighted average grant date fair value, expected to vest and exercisable (in dollars per share)	4.80
Weighted average grant date fair value, exercisable (in dollars per share)	$ 5.00
Weighted Average Remaining Contractual
Weighted average remaining contractual, outstanding	6 years 9 months 18 days	7 years 10 months 24 days
Weighted average remaining contractual life, expected to vest and exercisable	6 years 9 months 18 days
Weighted average remaining contractual life, exercisable	7 years

INCOME TAXES - Schedule of Reconciliation Between the Income Tax Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Loss before income tax	$ (158,167,000)	$ (206,483,000)	$ (33,624,000)
Tax credit at the U.S. federal corporate income tax rate of 21%	(33,214,000)	(43,361,000)	(7,061,000)
Tax effect of permanent differences – share-based compensation	20,098,000	17,408,000	0
Tax effect of permanent differences – others	(4,295,000)	(1,411,000)	(2,152,000)
Tax effect of income tax rate difference in other jurisdictions	1,657,000	6,287,000	2,511,000
Changes in valuation allowance	15,754,000	21,077,000	6,702,000
Others	33,000	0	1,000
Income tax expense	$ 33,000	$ 0	$ 1,000
Federal corporate income tax rate	21.00%	21.00%	21.00%

LAND USE RIGHTS, NET

12 Months Ended

Dec. 31, 2022

Land and Land Improvements [Abstract]

LAND USE RIGHTS, NET

8. LAND USE RIGHTS, NET

Land use rights consisted of the following:


	December 31, 2021		December 31, 2022
Cost of land use rights	$	16,390	$	15,143
Less: accumulated amortization	(2,382)		(2,504)
Land use rights, net	$	14,008	$	12,639

The land use rights were acquired for the use of the Group’s production facilities. Land use rights are amortized on a straight-line basis for 50 years or shorter of the estimated usage periods or the terms of the land use rights agreements. The Group recorded amortization expenses of $303, $325 and $310 for the years ended December 31, 2020, 2021 and 2022, respectively. Future amortization expense is $310 per year for each of the next five years through December 31, 2027 and thereafter.

BANK BORROWINGS - Schedule of Bank Borrowings Repayment (Details) - Forecast $ in Thousands, ¥ in Millions	Dec. 10, 2024 USD ($)	Dec. 10, 2024 CNY (¥)	Jun. 10, 2024 USD ($)	Jun. 10, 2024 CNY (¥)	Dec. 10, 2023 USD ($)	Dec. 10, 2023 CNY (¥)	Jun. 10, 2023 USD ($)	Jun. 10, 2023 CNY (¥)
June 10, 2023
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)							$ 4,349	¥ 30
December 10, 2023
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 10,149	¥ 70
June 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 14,499	¥ 100
December 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 14,499	¥ 100

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2022

Prepaid Expense and Other Assets, Current [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS


	December 31, 2021		December 31, 2022
Advances to suppliers	$	7,102	$	5,075
Prepaid expenses	4,687		3,374
VAT receivables	4,106		2,408
Deposits	1,029		925
Other receivables	203		311
Total	$	17,127	$	12,093

The balance of the VAT receivables represented the amount available for future deduction against VAT payable.

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

18. INCOME TAXES

The Company is incorporated in the U.S. and is subject to the U.S. state and federal income tax. Net operating losses incurred in taxable years beginning after December 31, 2017 are permitted to be carried forward indefinitely but may not be carried back.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted and signed into law in the United States. The CARES Act includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The CARES Act contains several corporate income tax provisions, including making remaining alternative minimum tax (AMT) credits immediately refundable; providing a 5-year carryback of net operating losses (NOLs) generated in tax years 2018, 2019, and 2020 and suspending the 80 percent taxable income limitation through 2020. Any portion of an NOL that arises in a tax year between 2018-2021 that is not previously absorbed is subject to the 80 percent limitation in tax years beginning after 2020. The CARES Act did not have a material impact on the Company’s tax provision for the years ended December 31, 2020, 2021 and 2022.

PRC

Under the Enterprise Income Tax Law of the PRC (the “EIT Law”), PRC enterprise income tax is generally calculated at 25% of the Company’s subsidiaries located in the PRC as determined in accordance with the EIT Law, except for certain subsidiaries which enjoy tax rates substantially lower than 25% due to incentive policies.

MPS was recognized as a “New and High Tech Enterprise” (“NHTE”) by the relevant PRC government authorities in 2018 and 2021. Therefore, MPS, as the NHTE, is entitled to an income tax rate of 15% for 2020, 2021 and 2022.

Huzhou Hongwei New Energy Automobile Co., Ltd. (“Hongwei”) was recognized as a NHTE by the relevant PRC government authorities in 2020 and it is entitled to an income tax rate of 15% for 2020, 2021 and 2022.

The withholding tax rate of 10% under the EIT Law is imposed on dividends declared to foreign investors with respect to profit earned by PRC subsidiaries from January 1, 2008 onward. Deferred tax liability was not provided with respect to undistributed profits of relevant PRC subsidiaries for the years ended December 31, 2020, 2021 and 2022, as the Group concluded that profits generated by the relevant PRC subsidiaries are considered to be permanently reinvested, because the Group does not have any present plan to pay any cash dividends on its ordinary shares in the foreseeable future and intends to retain all of its available funds and any future earnings for use in the operation and expansion of its business.

UK corporation tax is calculated at an average tax rate of 19% for the years ended December 31, 2020, 2021 and 2022, respectively. The estimated assessable profit generated by the Company’s subsidiary located in UK would be subject to corporation tax at such rate, in accordance with the Corporation Tax Acts. The Company did not have taxable profit and no corporation tax expense was recorded for the years ended December 31, 2020, 2021 and 2022.

Germany

German enterprise income tax, which is a combination of corporate income tax and trade tax, is calculated at an average tax rate of 31.9%, 29.1% and 27.9% for the years ended December 31, 2020, 2021 and 2022, respectively, for the Company’s subsidiary located in Germany in accordance with relevant tax rules and regulations in Germany.

A provision for income tax of $1, $ nil, and $33 has been recognized for the years ended December 31, 2020, 2021 and 2022, respectively.

Loss before provision for income taxes for the years ended December 31, 2020, 2021 and 2022 was as follows:


	December 31, 2020		December 31, 2021		December 31, 2022
Domestic(USA)	$	(3,584)	$	(98,821)	$	(116,353)
Foreign	(30,040)		(107,662)		(41,814)
Loss before income tax	$	(33,624)	$	(206,483)	$	(158,167)

The current and deferred components of the income tax expense in the consolidated statements of operations were as follows:


	December 31, 2020		December 31, 2021		December 31, 2022
Current tax expense	1		—		33
Deferred tax expense	—		—		—
Total provision for income taxes	$	1	$	—	$	33

The components of the Group’s deferred tax assets are as follows:


	December 31, 2021		December 31, 2022
Deferred tax assets:
Net operating loss carry-forwards	$	38,858	$	54,459
Allowance for doubtful accounts and inventory provision	4,712		3,311
Product warranty	8,769		6,309
Impairment of property, plant and equipment	1,210		1,367
Deferred income	392		334
Accrued expense	239		235
Others	920		838
Less: valuation allowance	(55,100)		(66,853)
Net deferred tax assets	$	—	$	—

The movements of valuation allowance for the years end December 31, 2020, 2021 and 2022 are as follows:


	December 31, 2020		December 31, 2021		December 31, 2022
Balance at beginning of the year	$	30,857	$	37,287	$	55,100
Additions	7,402		17,912		11,838
Reversal	(972)		(99)		(85)
Balance at end of the year	$	37,287	$	55,100	$	66,853

Reconciliation between the income tax expense computed by applying the U.S. federal corporate income tax rate of 21% to loss before income tax and actual provision is as follows:


	December 31, 2020		December 31, 2021		December 31, 2022
Loss before income tax	$	(33,624)	$	(206,483)	$	(158,167)
Tax credit at the U.S. federal corporate income tax rate of 21%	(7,061)		(43,361)		(33,214)
Tax effect of permanent differences – share-based compensation	—		17,408		20,098
Tax effect of permanent differences – others	(2,152)		(1,411)		(4,295)
Tax effect of income tax rate difference in other jurisdictions	2,511		6,287		1,657
Changes in valuation allowance	6,702		21,077		15,754
Others	1		—		33
Income tax expense	$	1	$	—	$	33

As of December 31, 2022, the Group had $324,850 operating loss carried forward. The operating loss carried forward for the Company’s PRC subsidiaries amounted to $257,498, which will expire on various dates from 2023 to 2032. For the remaining operating loss, $67,352 will be carried forward indefinitely. The Group determined the valuation allowance on an entity by entity basis and assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. The valuation allowance is primarily related to entities with net operating loss carry-forwards for which the Group does not believe it will ultimately be realized.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

RELATED PARTY BALANCES AND TRANSACTIONS

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Level 3 Convertible Notes [Roll Forward]
Balance as of January 1, 2021	$ 0	$ 0
Issuance of Bridge Notes		57,500
Loss on changes in fair value of Bridge Notes	$ 0	9,861	$ 0
Conversion as of Merger		(67,361)
Balance as of December 31, 2021		$ 0	$ 0

MAINLAND CHINA CONTRIBUTION PLAN	12 Months Ended
MAINLAND CHINA CONTRIBUTION PLAN	Dec. 31, 2022
Retirement Benefits [Abstract]
MAINLAND CHINA CONTRIBUTION PLAN	23. MAINLAND CHINA CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government-mandated multiemployer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. The total provisions for such employee benefits were $2,192, $2,774 and $3,370 for the years ended December 31, 2020, 2021 and 2022, respectively.

RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2022

26. RELATED PARTY BALANCES AND TRANSACTIONS


Name						Relationship with the Group

Ochem Chemical Co., Ltd (“Ochem”)						Controlled by CEO
Ochemate Material Technologies Co., Ltd (“Ochemate”)						Controlled by CEO

(1)Related party transaction


	Year Ended December 31,
	2020		2021		2022
Raw material sold to Ochem	$	167	$	390	$	—

(2)Interest-free loans

MPS received certain interest-free loans from related parties, Ochemate and Ochem, for the years ended December 31, 2020, 2021 and 2022, with accumulative amounts of $18,889, $8,426 and $ nil, respectively.

The outstanding balance for the amount due from Ochem was $85 as of December 31, 2021 and $ nil as of December 31, 2022, respectively.

ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

ACCOUNTS RECEIVABLE

4. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:


	December 31, 2021		December 31, 2022
Accounts receivable	$	93,722	$	123,711
Allowance for doubtful accounts	(5,005)		(4,407)
Accounts receivable, net	$	88,717	$	119,304

Movement of allowance for doubtful accounts was as follows:


	Year Ended December 31,
	2020		2021		2022
Balance at beginning of the period	$	5,537	$	5,047	$	5,005
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)	—		—		866
(Reserve)/Charge to expenses	(240)		721		1,640
Write off	(493)		(849)		(2,631)
Exchange difference	243		86		(473)
Balance at end of the period	$	5,047	$	5,005	$	4,407

ADDITIONAL INFORMATION FINANCIAL STATEMENT SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Cash Flow Statements, Captions [Line Items]
Net cash used in operating activities	$ (53,928)	$ (45,039)	$ 15,556
Cash flows from investing activities
Purchases of property, plant and equipment	(150,880)	(87,862)	(18,645)
Investment in subsidiaries	(25,070)	0	(4,635)
Net cash used in investing activities	(175,945)	(87,862)	(17,674)
Cash flows from financing activities
Cash received from the trust account upon Merger, net of transaction costs	0	222,629	0
Cash received from PIPE investors upon Merger	0	482,500	0
Issuance of Bridge Notes (Note 14)	0	57,500	0
Payment to exited noncontrolling interests	0	(139,038)	0
Net cash (used in)/generated from financing activities	4,967	624,949	(507)
(Decrease) Increase in cash, cash equivalents and restricted cash	(233,492)	494,913	(588)
Cash, cash equivalents and restricted cash at beginning of the year	536,109	41,196	41,784
Cash, cash equivalents and restricted cash at end of the year	302,617	536,109	41,196
Parent Company
Condensed Cash Flow Statements, Captions [Line Items]
Net cash used in operating activities	(4,498)	(2,846)	(3,398)
Cash flows from investing activities
Purchases of property, plant and equipment	0	(18,465)	(380)
Investment in subsidiaries	(255,662)	(354,014)	0
Purchases of short-term investment	(25,070)	0	0
Net cash used in investing activities	(280,732)	(372,479)	(380)
Cash flows from financing activities
Cash received from the trust account upon Merger, net of transaction costs	0	223,605	0
Cash received from PIPE investors upon Merger	0	482,500	0
Issuance of Bridge Notes (Note 14)	0	57,500	0
Payment to exited noncontrolling interests	0	(32,872)	0
Cash received from shareholders	27,559	0	0
Net cash (used in)/generated from financing activities	27,559	730,733	0
(Decrease) Increase in cash, cash equivalents and restricted cash	(257,671)	355,408	(3,778)
Cash, cash equivalents and restricted cash at beginning of the year	357,008	1,600	5,378
Cash, cash equivalents and restricted cash at end of the year	$ 99,337	$ 357,008	$ 1,600

LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Leases [Abstract]
2023	$ 2,662
2024	2,050
2025	1,549
2026	1,497
2027	1,497
Thereafter	12,098
Total future lease payments	21,353
Less: Imputed interest	(5,072)
Present value of operating lease liabilities	$ 16,281	$ 18,776

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

Noncontrolling interests and redeemable noncontrolling interests

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Basis of consolidation

Use of estimates

Emerging Growth Company

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, or which have maturities of three months or less.

Restricted cash

Accounts receivable

Notes receivable and payable

Short-term investments

Inventories, net

Prepaid expenses and other current assets

Prepaid expenses and other current assets primarily consist of advances to suppliers, prepaid expenses, deposits and value-added tax receivables.

Property, plant and equipment, net

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:


Buildings			20 years
Machineries and equipment			10 years
Fixtures and electronic equipment			4 - 5 years
Motor vehicles			5 years
Leasehold improvements			Shorter of the lease term or estimated useful lives

Land use rights, net

Acquired intangible assets, net

Acquired intangible assets with definite lives are amortized on a straight-line basis over their expected useful economic lives.

Impairment of long-lived assets

Impairment of long-lived assetsThe Company reviews long-lived assets with finite lives, including identifiable intangible assets with determinable useful lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts.

Fair value of financial instrument

Fair value

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Revenue recognition

Nature of Goods and Services

Contract balances

Value added taxes

The Group reports revenue net of VAT. Entities in PRC that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities.

Cost of revenues

Product Warranty

Research and development expenses

Subsidy income

Government subsidies represent government grants received from local government authorities.

Income taxes

Share-based compensation

Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement.

Operating leases

Warrant Liability

Comprehensive loss

Comprehensive loss includes net loss and foreign currency translation adjustments. Comprehensive loss is reported in the consolidated statements of comprehensive loss.

Net loss per share

Foreign currencies

Exchange differences on the monetary items are recognized in the consolidated statements of operations in the period in which they arise.

Foreign currency risk

Concentration of credit risk

Supplier Concentration

Newly adopted accounting pronouncements

Newly adopted accounting pronouncements - continued

Recent accounting pronouncements not yet adopted

Public warrants

Once the Public Warrants became exercisable, the Company may redeem the Public Warrants:

•in whole and not in part;

•at a price of $0.01 per warrant;

•upon not less than 30 days’ prior written notice of redemption;

•if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

PREFERRED SHARES (Tables)

12 Months Ended

Dec. 31, 2022

Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract]

Schedule of Balance of Series Preferred and Redeemable Noncontrolling Interests

The changes in the balance of Series C1 Preferred shares (“Series C1 Preferred”), Series C2 Preferred shares (“Series C2 Preferred”), Series D1 Preferred shares ('Series D1 Preferred') and redeemable noncontrolling interests included in the mezzanine equity for the years ended December 31, 2020 and 2021 were as follows:


(In thousands)	Series C1 Preferred		Series C2 Preferred		Series D1 Preferred		Redeemable noncontrolling interests
Ending balance as of January 1, 2020	$	76,684	$	73,100	$	127,935	$	80,561
Accretion	3,897		8,866		18,648		10,259
Ending balance as of December 31, 2020	$	80,581	$	81,966	$	146,583	$	90,820
Accretion from January 1 to July 23	2,257		5,132		10,708		5,841
Conversion as of Merger	(82,838)		(87,098)		(157,291)		(96,661)
Ending balance as of December 31, 2021	$	—	$	—	$	—	$	—

BONDS PAYABLE

12 Months Ended

Dec. 31, 2022

Bonds Payable [Abstract]

BONDS PAYABLE

14. BONDS PAYABLE


	December 31, 2021		December 31, 2022
Long–term bonds payable
Huzhou Saiyuan	$	73,147	$	43,888
Total	$	73,147	$	43,888

Convertible Bonds issued to Huzhou Saiyuan

On December 29, 2018, MPS signed an agreement with Huzhou Saiyuan, an entity established by the local government, to issue convertible bonds to Huzhou Saiyuan for a total consideration of $87,776 (RMB600 million). The Company pledged its 12.39% equity holding over MPS to Huzhou Saiyuan to facilitate the issuance of the convertible bonds. As of December 31, 2022, the principal outstanding on the convertible bonds was $43,888 (RMB300 million).

If the subscribed bonds are not repaid by the maturity date, Huzhou Saiyuan has the right to dispose of the equity interests pledged by the Company in proportion to the amount of matured bonds, or convert the bond to the equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds to equity interests of MPS, the equity interests pledged would be released and the convertible bonds should be converted to the equity interest of MPS based on the entity value of MPS at $950,000.

On September 28, 2020, MPS signed a supplemental agreement extending the repayment terms of the convertible bonds to Huzhou Saiyuan. In September 2022, MPS entered into supplement agreements with Huzhou Saiyuan to change the repayment schedule as follows: (i) $14,629 (RMB100 million) will be repaid, together with interest accrued, on or before November 10, 2022, (ii) $14,630 (RMB100 million) will be repaid, together with interest accrued, on or before December 31, 2022, and (iii) the remaining $43,888 (RMB300 million) will be repaid, together with interest accrued, on or before January 31, 2027. The applicable interest rate will be increased to 12% if the Group is in default on the repayment of the bonds at the respective due dates. The remaining terms and conditions of the convertible bonds are unchanged.

Convertible Bonds issued to third-party investors

On November 2, 2018, MPS signed a convertible bond agreement with the CL Investors, pursuant to which the CL Investors agreed to provide a non-interest bearing loan in an aggregate amount of $58,516 (RMB400 million) or up to $73,147 (RMB500 million) to MPS, and the CL Investors had the right to convert the bonds into a number of Series D2 preferred shares of the Company (the “Series D2 Preferred”) once approvals from the PRC and US government were obtained. As of December 31, 2020, $29,915 (RMB204.5 million) was subscribed by the CL Investors. On July 23, 2021, upon the completion of the Merger between Microvast, Inc. and Tuscan, the convertible bonds were settled and converted into 6,719,845 shares of Common Stock of the combined company. Refer to Note 3.

Convertible Notes at Fair Value (the “Bridge Notes”)

On January 4, 2021, the Company entered into a note purchase agreement to issue $57,500 convertible promissory notes to certain investors, fully due and payable on the third anniversary of the initial closing date. The notes bore no interest, provided, however, if a liquidity event (“Liquidity Event”) had not occurred prior to June 30, 2022, an interest rate of 6% would be applied retrospectively from the date of initial closing. The conversion of the Bridge Notes were contingent upon the occurrence of a PIPE financing, a Liquidity Event or a new financing after June 30, 2022 but before the maturity date (“Next Financing”).

The fair value option was elected for measurement of the Bridge Notes. Changes in fair value at a loss of $9,861 was recorded in the consolidated statements of operations for the year ended December 31, 2021.

On July 23, 2021, upon the completion of the Merger between Microvast, Inc. and Tuscan, the Bridge Notes were converted into 6,736,106 shares of Common Stock of the combined company.

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following:


	December 31, 2021		December 31, 2022
Machineries and equipment	$	150,519	$	140,160
Buildings	41,920		44,680
Leasehold improvements	30,035		28,625
Fixtures and electronic equipment	13,848		16,193
Motor vehicles	8,507		10,842
Total	244,829		240,500
Less: accumulated depreciation	(88,745)		(100,902)
Construction in progress	96,973		195,542
Property, plant and equipment, net	$	253,057	$	335,140

LEASES - Summary of Future Minimum Payments Under Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 3,763
2023	3,151
2024	2,345
2025	1,879
2026	1,879
Thereafter	17,109
Total Lease Liabilities	$ 30,126

INCOME TAXES - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss carry-forwards	$ 54,459	$ 38,858
Allowance for doubtful accounts and inventory provision	3,311	4,712
Product warranty	6,309	8,769
Impairment of property, plant and equipment	1,367	1,210
Deferred income	334	392
Accrued expense	235	239
Others	838	920
Less: valuation allowance	(66,853)	(55,100)	$ (37,287)	$ (30,857)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Assets, Valuation Allowance [Roll Forward]
Balance at beginning of the year	$ 55,100	$ 37,287	$ 30,857
Additions	11,838	17,912	7,402
Reversal	(85)	(99)	(972)
Balance at end of the year	$ 66,853	$ 55,100	$ 37,287

SHARE-BASED PAYMENT (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity Plan

The grant date fair value of the stock options was determined using the Black Scholes model with the following assumptions:


	Year Ended December 31, 2022
Exercise price	$2.42-$5.69
Expected terms (years)	6.00
Volatility	56.16%-57.84%
Risk-free interest rate	2.79%-3.02%
Expected dividend yields	0.00	%
Weighted average fair value of options granted	$1.33-$3.19

During the year ended December 31, 2021, the modification date fair value of the stock options was determined using the Binomial-Lattice Model with the following assumptions:


			After modification
Exercise price			$4.37-$6.28
Expected terms (years)			4.5-9.4
Volatility			47.6%-53.1%
Risk-free interest rate			1.26%-1.87%
Expected dividend yield			0.00%
Weighted average fair value of options modified			$4.70-$5.36

At the CRSU Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:


	Modification Date
Expected term (years)	0.07		~	2.07
Volatility	50.93	%	~	73.89%
Risk-free interest rate	1.15	%	~	3.05%
Expected dividend yields	0.00%

The following assumptions were used for the respective periods below to calculate the fair value of common shares to be issued under TSR awards on the date of grant using the Monte Carlo pricing model:


	Year Ended December 31, 2021		Year Ended December 31, 2022
Expected term (years)	2.18-2.35		2.68
Volatility	63.06%-64.31%		59.50	%
Risk-free interest rate	0.31%-0.55%		2.72	%
Expected dividend yields	0.00	%	0.00	%

Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM

Share options activity for the years ended December 31, 2022 was as follows:


Share options life	Number of Shares	Weighted Average Exercise Price (US$)	Weighted Average Grant Date Fair Value (US$)	Weighted Average Remaining Contractual

Outstanding as of January 1, 2022	33,503,657	6.19	4.95	7.9
Granted	2,900,000	4.81	2.69
Forfeited	(312,586)	6.28	4.87
Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Expected to vest and exercisable as of December 31, 2022	36,091,071	6.08	4.80	6.8
Exercisable as of December 31, 2022	11,875,830	6.20	5.00	7.0

Schedule Non-vested Shares Activity

CRSUs' activity for the years ended December 31, 2022 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of January 1, 2022	23,027,399	8.74	1
Vested	(9,582,930)	4.37
Outstanding as of December 31, 2022	13,444,469	2.38

The restricted stock units activity for the years ended December 31, 2022 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of January 1, 2022	671,441	9.08
Grant	1,239,854	4.93
Vested	(110,940)	6.26
Forfeited	(577,518)	5.30
Outstanding as of December 31, 2022	1,222,837	6.92

Schedule of Classification of Stock-based Compensation

The following summarizes the classification of share-based compensation:


	Year Ended December 31,
	2020		2021		2022
Cost of revenues	$	—	$	4,309	$	7,712
General and administrative expenses	—		59,492		67,261
Research and development expenses	—		13,064		13,987
Selling and marketing expenses	—		6,029		6,745
Construction in progress	—		237		525
Total	$	—	$	83,131	$	96,230

SEGMENT INFORMATION - Schedule of Long-lived Assets, Classified by Major Geographic Regions (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 347,779	$ 267,065
Long-lived assets, percentage	100.00%	100.00%
Asia & Pacific
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 233,202	$ 211,139
Long-lived assets, percentage	67.00%	79.00%
PRC
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 233,202	$ 211,139
Long-lived assets, percentage	67.00%	79.00%
Europe
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 19,705	$ 22,033
Long-lived assets, percentage	6.00%	8.00%
Germany
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 19,639	$ 21,966
Long-lived assets, percentage	6.00%	8.00%
United Kingdom
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 66	$ 67
Long-lived assets, percentage	0.00%	0.00%
United States
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets, amount	$ 94,872	$ 33,893
Long-lived assets, percentage	27.00%	13.00%

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2019
Significant Accounting Policies [Line Items]
Notes receivable	$ 2,196	$ 11,144		$ 2,196
Interest income from the short-term investments	$ 70	0	$ 37
Estimated useful life term	50 years
Recognized impairment loss of long lived assets	$ 1,798	$ 2,443	$ 567
Impairment long lived asset held for use statement of income or comprehensive income extensible enumeration not disclosed flag	true	true	true
Revenue recognized	$ 1,151	$ 1,455	$ 582
Amortized deferred subsidy	538	269	166
Deferred subsidy income	542	324		542
Deferred non current portion	3,066	2,286		3,066
Operating lease right-of-use assets	16,368	0		16,368	$ 18,826
Present value of operating lease liabilities	16,281			16,281	18,776
Operating lease liabilities, current	1,934	0		1,934
Total cash, cash equivalents and restricted cash	$ 302,617	$ 536,109	$ 41,196	$ 302,617		$ 41,784
Net revenues percentage				10.00%
Percentage of accounts receivable	10.00%	10.00%		10.00%
Purchase percentage	18.00%	12.00%	12.00%
Stockholders' equity, including portion attributable to noncontrolling interest	$ (612,977)	$ (686,698)	$ 384,602	$ (612,977)		320,261
China, Yuan Renminbi
Significant Accounting Policies [Line Items]
Total cash, cash equivalents and restricted cash	$ 98,021	102,782		98,021
Minimum
Significant Accounting Policies [Line Items]
Warranty, term	1 year
Maximum
Significant Accounting Policies [Line Items]
Warranty, term	8 years
Accumulated deficit
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	$ 791,165	$ 632,099	$ 397,996	$ 791,165		$ 320,760
Cumulative Effect, Period of Adoption, Adjustment
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest					866
Cumulative Effect, Period of Adoption, Adjustment \| Accumulated deficit
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest					$ 866

SHARE-BASED PAYMENT - Narrative (Details)								12 Months Ended			17 Months Ended
SHARE-BASED PAYMENT - Narrative (Details)	Jul. 07, 2022 $ / shares shares	Jun. 27, 2022 shares	Jun. 07, 2022 employee shares	Apr. 14, 2022 USD ($) executiveOfficer shares	Jul. 23, 2021 shares	Jul. 21, 2021	Oct. 30, 2015 $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2012	Dec. 31, 2022 USD ($) shares	Dec. 31, 2020 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Transition services initial term period				18 months
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, nonvested \| $				$ 4,897,000
Compensation expense \| $								$ 16,778,000
Number on non-vested shares, grant (in shares)								2,900,000
Number of executive officers \| executiveOfficer				2
Number of employees \| employee			2
Stock option \| $								$ 88,845,000
Weighted-average period								1 year 7 months 6 days
Aggregate intrinsic value \| $								$ 0			$ 0
Equity-based compensation costs \| $								12,448,000
Compensation cost \| $								$ 5,113,000
Convertible promissory notes converted common stock shares (in shares)					6,736,106
Series B2 Preferred
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage							25.00%
Stock-based compensation expense \| $									$ 39,227,000
Shares issued (in shares)							79,107					53,319
Exercise price (in dollars per share) \| $ / shares							$ 366.0
Fair market value percentage							70.00%
Convertible promissory notes converted common stock shares (in shares)					8,545,490
Terminated Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number (in shares)				1,122,100
Employee
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number on non-vested shares, grant (in shares)	500,000		600,000	1,800,000
Share-based compensation arrangement by share-based payment award, options, grants in period, grant date intrinsic value \| $ / shares	$ 2.42
2012 Share Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total issued and outstanding percentage										17.00%
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage					33.33%					33.33%
Granted options (in shares)									209,906
Granted options non-vested shares (in shares)									143,652
Converted options (in shares)									33,647,927
Converted options non-vested shares (in shares)									23,027,399
Common exchange ratio									160.3
2021 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Plan expire date						10 years
Common Stock Reserved For ESOP Plan						5.00%
Number of shares available for grants (in shares)								16,490,228			16,490,228
Capped Non-vested Shares Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period		20,023,699		2,860,713
Stock-based compensation expense \| $								$ 32,804,000
Capped Non-vested Shares Units \| Terminated Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, expiration period				3 months
Share Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense \| $								60,020,000
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense \| $								$ 1,358,000
Number on non-vested shares, grant (in shares)								1,239,854
Granted (in shares)											693,232
Performance Based Restricted Stock Unit (PSU)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense \| $								$ 2,048,000
Granted (in shares)											1,274,222

INCOME TAXES - Schedule of Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic(USA)	$ (116,353)	$ (98,821)	$ (3,584)
Foreign	(41,814)	(107,662)	(30,040)
Loss before provision for income tax	$ (158,167)	$ (206,483)	$ (33,624)

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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STATUTORY RESERVES AND RESTRICTED NET ASSETS	12 Months Ended
STATUTORY RESERVES AND RESTRICTED NET ASSETS	Dec. 31, 2022
Disclosure Text Block Supplement [Abstract]
STATUTORY RESERVES AND RESTRICTED NET ASSETS	24. STATUTORY RESERVES AND RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts, which is included in the retained earnings account in the equity section of the consolidated balance sheets. A wholly-owned foreign invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. If any PRC subsidiary incurs debt on its own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to the Group. Any limitation on the ability of the PRC subsidiaries to distribute dividends or other payments to their respective shareholders could materially and adversely limit the ability to grow, make investments or acquisitions that could be beneficial to pay dividends. The restricted amounts include the paid-in capital and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which is the amount of net assets of the Group’s entities in the PRC (mainland) not available for distribution, were $378,506 and $523,087 as of December 31, 2021 and 2022, respectively.

REVERSE RECAPITALIZATION

12 Months Ended

Dec. 31, 2022

Reverse Recapitalization [Abstract]

REVERSE RECAPITALIZATION

3. REVERSE RECAPITALIZATION

On July 23, 2021, Tuscan merged with Microvast, Inc., with Microvast, Inc. surviving from the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” On the Closing Date, pursuant to the terms of the Merger Agreement, the Framework Agreement1 and Subscription Agreements entered into with the holders of an aggregate of $57,500 outstanding Bridge Notes issued by Microvast, Inc. (the “Bridge Notes”, refer to Note 14) and the investors in the PIPE Financing:

•The Company issued 209,999,991 shares of Common Stock of the Company (“Common Stock”) to the former owners of Microvast, Inc. pursuant to the Merger Agreement, which number is inclusive of the shares being issued to the certain MPS convertible loan investors (the “CL Investors”, refer to Note 14) and MPS minority investors pursuant to the Framework Agreement;

•The Company issued 6,736,106 shares of Common Stock to the holders of the Bridge Notes;

•The Company issued 48,250,000 shares of Common Stock to the PIPE investors for a purchase price of $10.00 per share and an aggregate purchase price of $482,500;

•The Company issued 150,000 private placement units to Tuscan Holdings Acquisition LLC (the “Sponsor”) upon conversion of Notes payable by the Company in the amount of $1,500; such private placement units consist of (i) 150,000 shares of Common Stock and (ii) warrants to purchase 150,000 shares of Common Stock at an exercise price of $11.50 per share;

Pursuant to the Merger Agreement, the former owners of Microvast, Inc. (“Microvast Holders”) and the MPS minority investors will have the ability to earn, in the aggregate, an additional 19,999,988 shares of Common Stock (“Earn-Out Shares”) if the daily volume weighted average price of the Common Stock is greater than or equal to $18.00 for any 20 trading days within a 30 trading day period (or a change of control of the Company occurs that results in the holders of Common Stock receiving a per share price equal to or in excess of $18.00), during the period commencing on the Closing Date and ending on the third anniversary of the Closing Date. In accordance with ASC 815-40, the Earn-Out Shares were indexed to the Common Stock and were classified as equity.

Each of the options to purchase Microvast, Inc.’s common stock that was outstanding before the Merger was converted into options to acquire Common Stock by computing the number of Common Stock and converting the exercise price based on the exchange ratio of 160.3 (the “Common Exchange Ratio”). Refer to Note 22.

In connection with the Merger Agreement, Tuscan, MPS, the CL Investors (refer to Note 14), certain MPS minority investors, and certain other parties entered into a framework agreement (the “Framework Agreement”), pursuant to which, (1) the CL Investors waived their convertible loans issued on November 2, 2018, by MPS, in exchange for 6,719,845 shares of Common Stock of the Company and (2) the MPS minority investors waived their rights in MPS’s equity in exchange for 17,253,182 shares of Common Stock of the Company (refer to Note 19).

Each capped non-vested share unit of Microvast, Inc. that was outstanding before the Merger was converted into a non-vested share unit of the Company by computing the number of shares and converting the capped price based on the Common Exchange Ratio. Refer to Note 22.

As of the Closing Date and following the completion of the Merger, the ownership interests of the Company’s stockholders were as follows:


			Shares
Existing Microvast Equity Holders(a)			209,999,991
Existing Microvast Bridge Notes Holders			6,736,106
Tuscan public stockholders			27,493,140
Sponsor Group(b)(c)			7,608,589
EarlyBirdCapital			428,411
PIPE investors immediately after Merger			48,250,000
Common Stock			300,516,237


(a)			Excludes the Earn-Out Shares, but is inclusive of the shares being issued pursuant to the Framework Agreement to the CL Investors and MPS minority investors.


(b)			The Sponsor Group includes Common Stock owned by the Sponsor, Stefan M. Selig, Richard O. Rieger and Amy Butte.


(c)			Includes 1,687,500 shares that may be subject to cancellation in accordance with the amended escrow agreement.

The Merger is accounted for as a reverse recapitalization under U.S. GAAP. This determination is primarily based on (1) Microvast, Inc.’s stockholders comprising a relative majority of the voting power of the Company and having the ability to nominate the members of the Board, (2) Microvast, Inc.’s operations prior to the acquisition comprising the only ongoing operations of the Company, and (3) Microvast, Inc.’s senior management comprising a majority of the senior management of the Company. Under this method of accounting, Tuscan is treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of the Company represent a continuation of the financial statements of Microvast, Inc. with the Merger being treated as the equivalent of Microvast, Inc. issuing stock for the net assets of Tuscan, accompanied by a recapitalization. The net assets of Tuscan are stated at historical costs, with no goodwill or other intangible assets recorded and are consolidated with Microvast Inc.’s financial statements on the Closing Date. Operations prior to the Merger are presented as those of Microvast, Inc. The shares and net loss per share available to holders of the Company’s Common Stock, prior to the Merger, have been retroactively restated as shares reflecting the Common Exchange Ratio established in the Merger Agreement.

In connection with the Merger, the Company raised net proceeds of approximately $705,129, including $482,500 of cash in connection with the PIPE financing and the contribution of $281,726 of cash held in Tuscan’s trust account from its initial public offering, net of redemptions of Tuscan public stockholders of $922 and $58,175 transaction costs.

In connection with the Merger, the Sponsor and related parties entered into the amended escrow agreement, pursuant to which 1,687,500 shares owned by the Sponsor Group (“Escrow Shares”) are subject to cancellation on conditions that: (i) 50% of 1,687,500 shares shall be cancelled if the last sale price of the Common Stock does not equal or exceed $12.00 per share for any 20 trading days within any 30-trading day period prior to the fifth anniversary of the Closing, and (ii) 50% of 1,687,500 shares shall be cancelled if the last sale price of the Common Stock does not equal or exceed $15.00 per share for any 20 trading days within any 30-trading day period prior to the fifth anniversary of the Closing. In accordance with ASC 815-40, the Escrow Shares were indexed to the Common Stock and were classified as equity.

ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 123,711	$ 93,722
Allowance for doubtful accounts	(4,407)	(5,005)
Accounts receivable, net	$ 119,304	$ 88,717

PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 240,500	$ 244,829
Less: accumulated depreciation	(100,902)	(88,745)
Construction in progress	195,542	96,973
Property, plant and equipment, net	335,140	253,057
Machineries and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	140,160	150,519
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	44,680	41,920
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	28,625	30,035
Fixtures and electronic equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	16,193	13,848
Motor vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 10,842	$ 8,507

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure Text Block Supplement [Abstract]
Reserve percentage	10.00%
Registered capital percentage	50.00%
Restricted net asset	$ 523,087	$ 378,506

BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Bank Borrowings [Roll Forward]
Beginning balance		$ 13,301	$ 12,184	$ 11,922
Proceeds from bank borrowings	$ 58,708	38,926	17,308
Repayments of principal	(24,482)	(37,568)	(17,815)
Exchange difference	(1,132)	(241)	769
Ending balance	46,395	13,301	$ 12,184
Current	17,398	13,301
Non-current	28,997	0
Total	$ 46,395	$ 13,301

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Share-Based Payment Arrangement [Abstract]

COMMON STOCK	12 Months Ended
COMMON STOCK	Dec. 31, 2022
Dividends, Common Stock [Abstract]
COMMON STOCK	20. COMMON STOCK The Company has authorized 800,000,000 shares to be issued at $0.0001 par value, with 750,000,000 shares designated as Common Stock and 50,000,000 shares of redeemable convertible preferred stock. Immediately following the Merger, there were 300,516,237 shares of Common Stock issued with a par value of $0.0001 as disclosed in Note 3. The holder of each share of Common Stock is entitled to one vote.The Company has retroactively adjusted the shares issued and outstanding prior to July 23, 2021 to give effect to the Common Exchange Ratio of 160.3 established in the Merger Agreement. As of December 31, 2022, there were 309,316,011 shares of Common Stock issued and 307,628,511 shares outstanding.

SHARE-BASED PAYMENT

12 Months Ended

Dec. 31, 2022

SHARE-BASED PAYMENT

22. SHARE-BASED PAYMENT

In 2012, Microvast, Inc. adopted a Share Incentive Plan (the “2012 Plan”). The 2012 Plan permits the grant of options to purchase common stock, share appreciation rights, non-vested shares and non-vested share units. The maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the share incentive plan is 17 percent of the total issued and outstanding company shares on a fully-diluted basis. The share options, non-vested shares and non-vested share units granted to the employees or nonemployees shall vest and become non-forfeitable with respect to one-third of the total number of the non-vested share and non-vested share units immediately upon the occurrence of initial public offering, sale or transfer of all or substantially all of the business, operations or assets of Microvast, Inc. or its subsidiaries, taken as a whole, to a third party, or such other sale or transfer of common stock in Microvast, Inc. as determined, in each case, by Microvast, Inc. pursuant to legal documents and other obligations binding upon it (the “Initial Vesting Date”), and on each of the first and second anniversaries of the Initial Vesting Date; provided that through each applicable vesting date, the employee or nonemployee is employed. The Merger in 2021 did not constitute the satisfaction of a performance condition that would trigger the vesting of equity awards as stipulated in the 2012 Plan.

In connection with the Merger, all outstanding share awards granted under the 2012 Plan, 209,906 options and 143,652 capped non-vested share units, were converted into 33,647,927 options and 23,027,399 capped non-vested share units of the Company, respectively, using the Common Exchange Ratio of 160.3 as described in Note 3. Upon conversion, the Company modified the terms of the equity awards by removing the performance condition of the occurrence of an initial public offering and similar transaction under the 2012 Plan, and adopted a new vesting schedule of one-third of the total number on each of the first, second and third anniversaries of the Closing Date (the “Modification”). The Modification was considered a Type III modification under the Accounting for Share-Based Payments (Topic 718), in which the original awards were canceled, and the modified awards were considered granted on the modification date. Post-modification share-based compensation expense related to these new awards will be recognized over the remaining service period using modification date fair values. Following the Merger, no further awards will be granted under the 2012 Plan. All stock award activity was retroactively restated to reflect the conversion.

On July 21, 2021, the stockholders of the Company approved the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. The 2021 Plan reserves 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date (not including the shares underlying awards modified from the 2012 Plan) for issuance in accordance with the 2021 Plan’s terms. As of December 31, 2022, 16,490,228 shares of Common Stock was available for grant under the 2021 Plan.

On April 14, 2022, the Company's former Chief Financial Officer's ("Former CFO") employment with the Company was terminated. Simultaneously, a transition services agreement was entered into between the Company and the Former CFO for the provision of advisory services to the Company with an initial term of 18 months commencing on the date of the Former CFO's termination of employment. Upon the Former CFO's termination of employment, all 1,122,100 stock options and 2,860,713 capped non-vested share units held by the Former CFO immediately vested in full and a $4,897 cash payment was made to the Former CFO related to the settlement of capped non-vested share units. The Former CFO's stock options remain exercisable until three months following the termination of his transition services agreement with the Company. Because he continues to provide advisory services to the Company, the Former CFO is an eligible person rendering services under the 2012 Plan, and the accelerated vesting and extended exercise period of his stock options were in accordance with the terms and conditions of the Former CFO's employment agreement and stock option award agreement. As such, the changes are not considered a modification under ASC 718. During the year ended December 31, 2022, $16,778 of share-based compensation expense was recognized in connection with the vesting of the Former CFO's awards.

Share options

On April 14, 2022 and June 7, 2022, the Company granted 1,800,000 and 600,000 stock options to two new executive officers and two employees, subject to service conditions, respectively. The service conditions require the participant’s continued employment with the Company through the applicable vesting dates.

On July 7, 2022, the Company granted 500,000 stock options to an employee with an exercise price of $2.42. The vesting of these options is subject to a service condition of continued employment with the Company through the applicable vesting dates and performance condition which requires the achievement of certain performance criteria as defined in the award agreement. The criteria is probable to achieve and therefore related expenses were recognized.

During the year ended December 31, 2022, the Company recorded share-based compensation expense of $60,020 related to the option awards.

The grant date fair value of the stock options was determined using the Black Scholes model with the following assumptions:


	Year Ended December 31, 2022
Exercise price	$2.42-$5.69
Expected terms (years)	6.00
Volatility	56.16%-57.84%
Risk-free interest rate	2.79%-3.02%
Expected dividend yields	0.00	%
Weighted average fair value of options granted	$1.33-$3.19

The exercise prices for each award were extracted from the option agreements. The expected terms for each award were derived using the simplified method, and is estimated to occur at the midpoint of the vesting date and the expiration date. The volatility of the underlying common stock during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the options. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

During the year ended December 31, 2021, the modification date fair value of the stock options was determined using the Binomial-Lattice Model with the following assumptions:


			After modification
Exercise price			$4.37-$6.28
Expected terms (years)			4.5-9.4
Volatility			47.6%-53.1%
Risk-free interest rate			1.26%-1.87%
Expected dividend yield			0.00%
Weighted average fair value of options modified			$4.70-$5.36

Share options - Continued

Exercise price was extracted from option agreements. Expected lives was derived from option agreements. The volatility of the underlying common shares during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options and the implied volatility of the Company. Risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the options, plus country risk spread. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

Share options activity for the years ended December 31, 2022 was as follows:


Share options life	Number of Shares	Weighted Average Exercise Price (US$)	Weighted Average Grant Date Fair Value (US$)	Weighted Average Remaining Contractual

Outstanding as of January 1, 2022	33,503,657	6.19	4.95	7.9
Granted	2,900,000	4.81	2.69
Forfeited	(312,586)	6.28	4.87
Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Expected to vest and exercisable as of December 31, 2022	36,091,071	6.08	4.80	6.8
Exercisable as of December 31, 2022	11,875,830	6.20	5.00	7.0

The total unrecognized equity-based compensation costs as of December 31, 2022 related to the stock options was $88,845, which is expected to be recognized over a weighted-average period of 1.6 years. The aggregate intrinsic value of the share options as of December 31, 2022 was $ nil.

Capped Non-vested share units

The capped non-vested shares units ("CRSUs") represent rights for the holder to receive cash determined by the number of shares granted multiplied by the lower of the fair market value and the capped price, which will be settled in the form of cash payments. The CRSUs were accounted for as liability classified awards.

On June 27, 2022, the Board of Directors and Compensation Committee approved a modification of the settlement terms of 20,023,699 CRSUs under the 2021 Plan from cash settlement to share settlement (the “CRSU Modification ”). Pursuant to the CRSU Modification, on each vesting date, if the stock price is higher than the capped price, the number of shares to be issued will be calculated based on the following formula:

Number of shares to be issued = Capped price* Number of shares vested /Vesting date stock price

If the stock price is equal to or less than the capped price, the Company will grant a fixed number of shares on each vesting date based on the vesting schedule. All other terms of the CRSUs remain unchanged. The CRSU Modification resulted in a change of the CRSUs’ classification from liability to equity, as the predominant feature of the modified CRSUs was the granting of a fixed number of shares on each vesting date instead of a fixed monetary amount. The determination of the predominant feature was based on the estimated probability of how the awards will be settled using the Monte Carlo model.

At the CRSU Modification date, the Company reclassified the amounts previously recorded as a share-based compensation liability to additional paid-in capital. The modified CRSUs were accounted for as an equity award going forward from the date of the CRSU Modification with compensation expenses recognized for each tranche at the fair value measured on the modification date.

Capped Non-vested share units - Continued

At the CRSU Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:


	Modification Date
Expected term (years)	0.07		~	2.07
Volatility	50.93	%	~	73.89%
Risk-free interest rate	1.15	%	~	3.05%
Expected dividend yields	0.00%

Expected term was the time left (in years) from the CRSU Modification date to the vesting date based on the terms of the applicable award agreements. The volatility of the underlying common stock was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the awards. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the awards. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the awards.

During the year ended December 31, 2022, the Company recorded share-based compensation expense of $32,804, related to these CRSUs awards.

CRSUs' activity for the years ended December 31, 2022 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of January 1, 2022	23,027,399	8.74	1
Vested	(9,582,930)	4.37
Outstanding as of December 31, 2022	13,444,469	2.38

The total unrecognized equity-based compensation costs as of December 31, 2022 related to the CRSUs was $12,448.

Restricted Stock Units

Following the Merger, the Company granted 693,232 restricted stock units (“RSUs”) and 1,274,222 performance-based restricted stock unit (“PSU”) awards subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s TSR. For RSU awards with performance conditions, stock-based compensation expense is only recognized if the performance conditions become probable to be satisfied.

Restricted Stock Units - Continued

The fair value of RSUs is determined by the price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSU awards that include vesting based on market conditions are estimated using the Monte Carlo valuation method. Compensation cost for PSU awards is recognized based on the grant date fair value which is recognized over the vesting period on a straight-line basis. Accordingly, the Company recorded stock-based compensation expense of $1,358 related to these RSU awards and $2,048 related to these PSU awards during the year ended December 31, 2022.


	Year Ended December 31, 2021		Year Ended December 31, 2022
Expected term (years)	2.18-2.35		2.68
Volatility	63.06%-64.31%		59.50	%
Risk-free interest rate	0.31%-0.55%		2.72	%
Expected dividend yields	0.00	%	0.00	%

Expected term was derived based on the remaining time from the grant date through the end of the performance period. The volatility of the underlying common stock during the lives of the awards was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the awards. Risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the awards. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the awards.

The restricted stock units activity for the years ended December 31, 2022 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of January 1, 2022	671,441	9.08
Grant	1,239,854	4.93
Vested	(110,940)	6.26
Forfeited	(577,518)	5.30
Outstanding as of December 31, 2022	1,222,837	6.92

The total unrecognized equity-based compensation costs as of December 31, 2022 related to the non-vested restricted stock units was $5,113.

Series B2 Preferred subscribed by employees

On October 30, 2015, the Company issued 79,107 Series B2 Preferred to certain employees of the Company. The Series B2 Preferred were issued for cash consideration of $366.0 per share (“Series B2 Award”) and all the Series B2 Preferred were fully paid on the date of issuance. The Series B2 Award shall vest with respect to one-fourth of the total number immediately upon the occurrence of a qualified IPO or Initial Vesting Date, and on each of the first, second and third anniversaries of the Initial Vesting Date; provided that through each applicable vesting date, the holder of the Series B2 Award remains employed with the Company. If a holder of the Series B2 Award terminates employment before the vesting, the Company could repurchase the Series B2 Preferred for a per share price equal to the lower of the original Series B2 Preferred subscription price or 70% of the fair market value of such Series B2 Preferred. The Company’s repurchase right upon employment termination is viewed as forfeiture and the Company accounted for the Series B2 Award as a stock option.

As of December 31, 2020, 53,319 Series B2 Preferred shares were legally issued and outstanding. Upon the Merger, these Series B2 Preferred were converted into 8,545,490 Common Stock, however, the Series B2 Award was not vested as the performance condition was not reached. In September 2021, the performance and service condition was exempted for the Series B2 holders and the awards were fully vested. The exemption of performance and service condition was considered a Type III modification under Topic 718, in which the original awards were canceled, and the modified awards were considered granted on the modification date. Post-modification stock-based compensation expense related to these new awards of $39,227 was recognized using modification date fair values determined based on the difference between the exercise price and the Common Stock price on the modification date. Accordingly, the deposit liability was reclassified to equity upon the vesting.

The following summarizes the classification of share-based compensation:


	Year Ended December 31,
	2020		2021		2022
Cost of revenues	$	—	$	4,309	$	7,712
General and administrative expenses	—		59,492		67,261
Research and development expenses	—		13,064		13,987
Selling and marketing expenses	—		6,029		6,745
Construction in progress	—		237		525
Total	$	—	$	83,131	$	96,230

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31, 2021		December 31, 2022
Product warranty	$	20,922	$	13,044
Payables for purchase of property, plant and equipment	18,500		29,183
Other current liabilities	10,636		8,608
Accrued payroll and welfare	3,476		4,716
Accrued expenses	2,444		2,641
Interest payable	1,836		298
Operating lease liabilities, current	—		1,934
Other tax payable	926		6,296
Total	$	58,740	$	66,720

ACQUIRED INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 244	$ 413	$ 392

OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Liabilities, Noncurrent [Abstract]
Product warranty - non-current	$ 29,016	$ 37,536	$ 15,060
Deferred subsidy income- non-current	3,066	2,286
Total	$ 32,082	$ 39,822

ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Intangible Assets Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Cost of acquired intangible assets	$ 3,493	$ 4,104
Less: accumulated amortization	(1,857)	(2,222)
Acquired intangible assets, net	$ 1,636	$ 1,882

PREFERRED SHARES

12 Months Ended

Dec. 31, 2022

Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract]

PREFERRED SHARES

21. PREFERRED SHARES

On July 23, 2021, upon the completion of the Merger between Microvast, Inc. and Tuscan, all preferred shares were converted into Common Stock of the combined company at the Common Exchange Ratio of 160.3 as disclosed in Note 3.


(In thousands)	Series C1 Preferred		Series C2 Preferred		Series D1 Preferred		Redeemable noncontrolling interests
Ending balance as of January 1, 2020	$	76,684	$	73,100	$	127,935	$	80,561
Accretion	3,897		8,866		18,648		10,259
Ending balance as of December 31, 2020	$	80,581	$	81,966	$	146,583	$	90,820
Accretion from January 1 to July 23	2,257		5,132		10,708		5,841
Conversion as of Merger	(82,838)		(87,098)		(157,291)		(96,661)
Ending balance as of December 31, 2021	$	—	$	—	$	—	$	—

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenues	$ 204,495	$ 151,976	$ 107,518
Cost of revenues	(195,422)	(194,719)	(90,378)
Gross profit	9,073	(42,743)	17,140
Operating expenses:
General and administrative expenses	(104,572)	(101,632)	(18,849)
Research and development expenses	(43,508)	(34,385)	(16,637)
Selling and marketing expenses	(22,611)	(21,431)	(13,761)
Total operating expenses	(170,691)	(157,448)	(49,247)
Subsidy income	1,672	6,127	3,000
Loss from operations	(159,946)	(194,064)	(29,107)
Other income and expenses:
Interest income	3,179	446	571
Interest expense	(3,323)	(5,411)	(5,738)
Loss on changes in fair value of Bridge Notes	0	(9,861)	0
Gain on changes in fair value of warrant liability	979	2,469	0
Other income (expense), net	944	(62)	650
Loss before provision for income tax	(158,167)	(206,483)	(33,624)
Income tax expense	(33)	0	(1)
Net loss	(158,200)	(206,483)	(33,625)
Less: Accretion of Series C1 Preferred	0	2,257	3,897
Less: Accretion of Series C2 Preferred	0	5,132	8,866
Less: Accretion of Series D1 Preferred	0	10,708	18,648
Less: Accretion for noncontrolling interests	0	9,523	15,927
Net loss attributable to common stock shareholders of Microvast Holdings, Inc.	$ (158,200)	$ (234,103)	$ (80,963)
Net loss per share attributable to Common Stock shareholders of Microvast Holdings, Inc.
Basic (in dollars per share)	$ (0.52)	$ (1.26)	$ (0.82)
Diluted (in dollars per share)	$ (0.52)	$ (1.26)	$ (0.82)
Weighted average shares used in calculating net loss per share of common stock:
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	303,279,188	185,896,482	99,028,297
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	303,279,188	185,896,482	99,028,297

ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of the period	$ 5,005	$ 5,047	$ 5,537
(Reserve)/Charge to expenses	1,640	721	(240)
Write off	(2,631)	(849)	(493)
Exchange difference	(473)	86	243
Balance at end of the period	4,407	$ 5,005	$ 5,047
Cumulative Effect, Period of Adoption, Adjusted Balance
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at end of the period	$ 866

PREFERRED SHARES - Narrative (Details)	Jul. 23, 2021
Common Stock
Preferred Units [Line Items]
Reverse recapitalization, exchange ratio	160.3

RELATED PARTY BALANCES AND TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Loans from related parties, accumulative amount	$ 0	$ 8,426	$ 18,889
Outstanding balance due from related party		$ 85

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS - Schedule of Company’s Major Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2022
Microvast, Inc. (“Microvast”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%
Microvast Power Solutions, Inc (“MP Solutions”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%
Microvast Power Systems Co., Ltd. (“MPS”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%
Microvast GmbH (“MV GmbH”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%
Huzhou Hongwei New Energy Automobile Co., Ltd. (“Hongwei”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%
Microvast Energy, Inc. (“MV Energy”)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of ownership	100.00%

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities


	December 31, 2021		December 31, 2022
Product warranty	$	20,922	$	13,044
Payables for purchase of property, plant and equipment	18,500		29,183
Other current liabilities	10,636		8,608
Accrued payroll and welfare	3,476		4,716
Accrued expenses	2,444		2,641
Interest payable	1,836		298
Operating lease liabilities, current	—		1,934
Other tax payable	926		6,296
Total	$	58,740	$	66,720

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Property, Plant and Equipment are Carried at Cost Less Accumulated Depreciation

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:


Buildings			20 years
Machineries and equipment			10 years
Fixtures and electronic equipment			4 - 5 years
Motor vehicles			5 years
Leasehold improvements			Shorter of the lease term or estimated useful lives

Schedule of Net Revenues from Customers

The following table summarizes net revenues from customers that accounted for 10% or more of the Group’s net revenues for 2020, 2021 and 2022:


	December 31, 2020	December 31, 2021		December 31, 2022
Percentage of revenue contributed by Customer A	*%	11	%	12	%

*Revenue from such customer represented less than 10% of the Group's revenue during the respective periods.

Schedule of Accounts Receivable from Customers

The following table summarizes accounts receivable from customers that accounted for 10% or more of the Group’s accounts receivable:


	December 31, 2021		December 31, 2022
Percentage of accounts receivable from Customer A	*%		22	%
Percentage of accounts receivable from Customer B	18	%	*%

*Accounts receivable from such customers represented less than 10% of the Group's accounts receivable during the respective years.

INCOME TAXES - Schedule of Current and Deferred Components of the Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current tax expense	$ 33	$ 0	$ 1
Deferred tax expense	0	0	0
Total provision for income taxes	$ 33	$ 0	$ 1

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

LAND USE RIGHTS, NET - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Land and Land Improvements [Abstract]
Estimated usage term period	50 years
Amortization expenses	$ 310	$ 325	$ 303
Land use rights, expected amortization, next one year	310
Land use rights, expected amortization, next two years	310
Land use rights, expected amortization, next three years	310
Land use rights, expected amortization, next four years	310
Land use rights, expected amortization, next five years	310
Land use rights, expected amortization, after five years	$ 310

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

25. SEGMENT INFORMATION

Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s CODM has been identified as the Chief Executive Officer (“CEO”), who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only and does not distinguish between products for the purpose of making decisions about resources allocation and performance assessment. As such, the Group concluded that it has one operating segment and one reporting segment.

Long-lived assets, classified by major geographic regions are as follows:


	December 31,			December 31,
Geographic regions	2021			2022
	Amount	%		Amount	%
PRC	211,139	79	%	233,202	67	%
Asia & Pacific	211,139	79	%	233,202	67	%
Germany	21,966	8	%	19,639	6	%
United Kingdom	67	0	%	66	0	%
Europe	22,033	8	%	19,705	6	%
United States	33,893	13	%	94,872	27	%
Total	267,065	100	%	347,779	100	%

Disaggregation of revenue

Revenues, classified by major geographic regions in which the Group’s customers are located are as follows:


	Year ended December 31,			Year ended December 31,			Year ended December 31,
Geographic regions	2020			2021			2022
	Amount	%		Amount	%		Amount	%
PRC	66,160	62	%	93,326	61	%	132,469	65	%
India	8,570	8	%	17,805	12	%	47,323	23	%
Russia	5,671	5	%	12,213	8	%	305	0	%
Other Asia & Pacific countries	2,254	2	%	8,172	5	%	4,938	2	%
Asia & Pacific	82,655	77	%	131,516	86	%	185,035	90	%
United Kingdom	11,544	11	%	11,386	7	%	3,976	2	%
Italy	5,965	6	%	3,140	2	%	6,389	3	%
Other European countries	6,805	6	%	5,016	4	%	5,444	3	%
Europe	24,314	23	%	19,542	13	%	15,809	8	%
United States	549	0	%	918	1	%	3,651	2	%
Total	107,518	100	%	151,976	100	%	204,495	100	%

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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