Good day, and welcome to the UBS Energy Transition call with Microvast, hosted by Jon Windham. My name is Julie, and I'm your event manager. Now I'd like to hand the call over to Jon. Please go ahead. Thanks, Julie, and welcome everybody to the latest installment of the UBS Energy Transition call series. In this call series, we try to connect UBS institutional clients with energy experts and innovative companies that are in some way enabling or driving the energy transition. Today's call certainly fits that topic. We will be discussing next-generation battery technologies with Microvast today. Just a little bit of background. Microvast is a leading global provider of next-generation battery technologies for commercial and especially EVs. Some background, on the 1st of February this year, they announced a business combination with Tuscan Holdings, ticker THCB, and is expected on close to trade on the NASDAQ under ticker MVST. We are very happy to have with us today on the call from Microvast, the President in the U.S.A., Shane Smith, as well as Wenjuan Mattis, the Chief Technology Officer, and Sascha Kelterborn, the Chief Revenue Officer. In addition, we have from Tuscan Holdings, Alan Pinto. Before I hand it over to Alan, just some quick logistical items we need to go through. First, there are slides to accompany today's discussion. They were distributed via email to pre-registered participants about 15 minutes ago. Second, the format of today's call will be some introductory comments by Alan, as well as a presentation by Shane and his team. Following that, we will do some Q&A. Julie, the operator, will provide you on instructions on how you can log any questions after the presentation. As always, if you prefer, do feel free to email me any questions directly, and I'll try to get them asked for you anonymously as time permits. If you don't see the link to the slides or if you have a question, best thing to do is just to email me. Some of us do have it, but my email is jonj.windham@ubs.com. Lastly, a quick disclosure. As a research analyst at UBS, we're required to provide certain disclosures. They were included in the email, in the original invite to this call. The short of it is, this call is not a recommendation to transact in any security. Full list of disclosures available on ubs.com. All right. With all that out of the way, let's get to the fun part. Why don't I welcome to the call Alan Pinto from Tuscan Holdings. Thanks for being here, Alan. I'll turn the floor over to you. Thank you, Jon. Thank you, and thank UBS for having us today. We are excited to present and tell the story. By way of background, I'm a partner at InterPrivate Acquisition, which is a repeat SPAC sponsor. InterPrivate, as some of you may know, effectuated a transaction with a company called Aeva, which is an advanced machine perception and LiDAR company. That deal closed about a month ago. When we were looking at candidates for a merger with InterPrivate, we had the good fortune of seeing a lot of great companies, and Microvast was at the top of the list. As a matter of capacity and timing, we moved forward with the Aeva transaction, but we were quite resolute in not letting Microvast go because we recognized some of the attributes that the company had, which really differentiated us, we think, in the landscape of electric vehicle electrification and certainly battery technology. We had a relationship with Stephen Vogel, who is the founder of Tuscan Holdings. Our sponsor groups have known each other for a long time. We collaborated on several things. When it was clear that Stephen was as enthusiastic about Microvast as we were, we agreed to port the transaction over to Tuscan Holdings, and we shepherded the deal together. What really excited us about Microvast is that the company has been in operation for a decade and has developed this game-changing battery technology and has actually proven out their technical and performance advantages on the road over the last 10 years. They have 30,000 battery systems on the road, including in the iconic double-decker buses in London. Those batteries have had almost no degradation of performance over the last seven, eight, nine years. What is really impressive to us is that when the company decided to shift their focus away from the Asian market, that was usually more focused on price rather than safety, and came to the Western market, they very quickly landed some landmark partnership agreements and contracts with the likes of CNHI, via PowerChain. Those are billion-dollar-plus contracts. They have a strategic investment from Oshkosh here in the U.S. We're building a new facility here in the U.S. What I think is key to the Western market is this focus on safety. The company is fully vertically integrated from cell chemistries all the way to packs, the battery packs. What has differentiated them, we believe, in the space is their focus on this sort of foundational technology, one of which being a gradient cathode, which allows for much greater energy density, and then in my view, most importantly, an aramid separator, which provides for thermal stability and safety, including faster charging times, that we think really differentiates them in the market. They have been producing these batteries, as I said, in their facilities in China. They're expanding production in Europe and the United States. We believe that trajectory for landing landmark contracts and deals with commercial vehicle makers, here in the Western market is pretty clear. We're very excited about the company. We launched the PIPE with Morgan Stanley in January. We originally planned to raise $250 million. We upsized it to over $500 million. The company now has $800 million of fresh capital to execute on their plans. We think that the next several years will really start to put out the differentiation in the market. This isn't a science experiment. The technology exists. It's on the road. They're also not using anyone else's technology. It's entirely theirs. They're fully vertically integrated, which we think really differentiates them from their peers that are in the market right now. With that, I'll pass it off to Shane Smith, who's the Chief Operating Officer and the head of North America, and he will introduce the company and then further to Wenjuan and Sascha. Thanks for your time, and I very much appreciate UBS having us. Great. Thank you, Alan. Thank you, Jon and UBS Energy. We're going to try to reference the slide presentation throughout our discussion today, so we'll try to communicate that as we jump from slide to slide. We're focused on slide six. I think the introductions have been made. One of the things I want to start with is our CEO and Founder, Yang Wu. Even though he's not on the call today, it's very important, as Microvast was started because it's foundational to where we are today. Wu is a very gifted entrepreneur, and Microvast is his eighth successful business, all which have been totally unrelated. In 2006, Wu started Microvast in Houston, Texas, by assembling a team of scientists that did not have a traditional battery background to encourage innovation. He keenly believed that the performance of the lithium-ion battery was competing against the internal combustion engine, rather than using traditional consumer battery technology as a starting point, like so many other companies chose to do at the time. The three underlying battery features Mr. Wu envisioned 14 years ago were fast charging to ensure mobility, long life to minimize the total cost of ownership, and to design for safety from the start, given the insatiable demand for higher energy density. These features are foundational to the innovative technologies and products that we are shipping to our customers today. If you look at the next slide, which is slide eight in our deck, I believe it's numbered, you'll see it where it says Microvast at a glance. You'll see that our batteries are integrated in more than 28,000 vehicles, running in 160 cities across 19 countries and have traveled over 3.8 billion mi. Microvast is a fully vertically integrated battery company, meaning we design, develop, and manufacture a complete battery system, starting with the battery materials, cells, modules, packs, and the battery management system. Why is this important? It enables the leading battery cell performance that we offer today. It shortens the development life cycle and offers more flexibility when customizing a battery solution, leveraging our breadth of capabilities. Finally, a vertically integrated supply chain eliminates stack margins. Microvast's experience in business started by concentrating on China, the largest and fastest growing electrification market at the time, where the battle for business was one-dimensional. The lowest price won. Over the last 18 to 24 months, Microvast has shifted its focus to the European Union and U.S., where the battery performance of our products are highly valued, resulting in numerous customer wins. Our products and technologies have been validated by some of the largest OEMs in the world, resulting in landmark contracts that could potentially exceed $1.5 billion. Microvast is highly differentiated in four key areas. We have a strong product portfolio with an existing customer base where we have won more business than we have capacity for. Having recently raised over $800 million, we have already initiated our capacity expansion plans to support our rapidly growing customer demand. Our battery solutions that have been on the road for over 10 years allows us to move the discussion with our customers from a theoretical estimate to field validation. Very few battery companies can offer this level of proven data. The next area of differentiation is our battery components. We manufacture a high-temperature aramid separator, which the primary use for a separator is to keep the anode and cathode from coming in contact with each other. This product is essential in maintaining the margin to safety as the industry pushes for higher energy densities. Finally, Microvast is the only company who can produce a full concentration gradient cathode material in high volume production. This technology once again improves the battery's margin to safety, enables higher energy density, and lowers cobalt content, resulting in lower cost. Going to the next slide, you can see our footprint, at least our geographical footprint as it is today. We're headquartered in Houston, Texas. We have 1.7 million square feet of building in Huzhou, China, where we manufacture not only cell, module, and pack, but we also manufacture the four key components of the battery cell: the anode, the cathode, the separator, and the electrolyte. We also have 170,000 sq f t of building right outside of Berlin, Germany, where we manufacture module and packs. Finally, we're in the process of converting an existing building northwest of Nashville, Tennessee, in Clarksville, where we will manufacture cell module and pack in a 600,000 sq ft building. Moving to the next slide, you can see the four key markets we're engaged in. First, commercial vehicles. Commercial vehicles are made up of trucks, light-duty vans, buses, trains, AGV, mining trucks, and specialty vehicles. In this case, you'd say, "What's so unique about a commercial vehicle?" Well, first of all, the asset's usually expensive. They traditionally operate in a predefined area, and are often required to operate 24/7 to maximize its return on investment. That also sets the type of battery specifications that are needed. Energy density has to be balanced with a long cycle life. Cycle life is the number of times a battery is charged and discharged in its lifetime. Then he needs to make sure that it's operating continuously, perhaps even longer than what a person's able to drive. Therefore, charging time becomes very relevant. The batteries we make for these types of applications, we try to focus on 10-30-minute charge time. We've also identified, with our customers, that the traditional commoditized passenger EV battery is not conducive for the commercial vehicle market. Microvast has to manufacture these types of high-performance batteries in order for these applications to get a return on investment or not have to be replaced sometime in its lifetime, the battery does, in order to match the life of the vehicle. We take the same product portfolio and focus on high-performance energy storage solutions, such as grid management or frequency regulation. Knowing passenger OEMs have plans to make their own batteries, we're engaged and are providing battery components such as aramid separator and gradient cathode to the passenger vehicle market. Finally, we're using the same components for consumer electronic markets so that they can increase the energy density or the time between charges for their devices. Probably as a follower of the market, you can see on the next couple of slides, there's no problem with the size when commercial vehicles measured at $30 billion total available market, only 1.5% of it is electrified today. Looking at only 8.5% by 2025, that's still a 55% compound annual growth rate. Not to mention that these commercial assets are fairly large vehicles, so 30%-40% of the value is made up in the battery itself. As you can see, again, when you look at passenger vehicles, energy storage, and consumer electronics, the size of the markets are really large. Without further ado, I'll pass it over to Dr. Mattis. Thank you, Shane. Hey, good morning, everyone. Very nice to meet you today through UBS Energy Transition call. My name is Wenjuan Mattis. I have been working on the development of lithium battery technology for over 16 years. I hold 22 papers and 81 patents. In Microvast, I am responsible for the development of battery materials, cells, module, and the pack from the R&D to pre-mass production. As Alan and Shane have mentioned, Microvast has been dedicated in developing battery technology for electric vehicle for 15 years. Following the global markets, we have established R&D, production, and business, started in Asia Pacific and expanded into Europe and the USA. We have been powering xEVs worldwide for over 10 years. On page 13, we demonstrate the comparison of our products with our peers, the largest ones in the world. As earlier noted, Microvast is uniquely positioned in focusing on the commercial vehicle space, while most major peers are passenger vehicle-focused. Why do we focus on commercial vehicles? Because it's a earlier EV adoption, broader range of use cases, more stringent performance requirements, and resiliency due to use under harsher conditions. Passenger vehicles operate a couple of hours per day, while commercial vehicles need to operate 8 to 24 hours per day. The CV batteries need to double to quadruple PV batteries' cycle life and to offer faster charging and higher power capabilities. The total cost of ownership is calculated over longer lives that heighten the customer's focus on the performance. The technology for commercial vehicle is more difficult but more profitable. By the way, the CV market is massive. CV is our prioritized choice with our current capacity. As a matter of fact, we are also supplying for passenger vehicles, which we will talk about on page 15. When applying our high-performance battery created for CV onto PV, that would create amazing performance that we will discuss more in the next page. I would also like to point out that many of our peers offer single chemistry, while Microvast offer all the major chemistry on the market, NMC, LFP, and LTO. Our products in the first top three rows on page 13, that have been in production as early as 10 years ago. Each of them outperforms their peers. These products are third-party tested, market-validated, both through customer wins and extensive real-world deployment experience, as shown on page 10. Beyond the historical wins, we also have a robust pipeline of identified opportunities that Sascha would bring insights to you in the commercial session. The last row on this page is the next generation battery product to come, which has been validated by Argonne National Laboratory. This product offers 30% higher energy density comparing with current PEV technology, it still yet offers fast charging and long cycle life capabilities. This technology has won Microvast R&D 100 Award in 2019. It's like the Oscar Award in all the technology awards. People do dress up to attend the award ceremony. We were the only winner in the lithium battery field. There are more products in the pipeline, such as solid-state battery, lithium-metal battery that can reach more than 1,000 Wh/L energy density, and 80 degrees Celsius high-temperature cells, which is highly appreciated by a high-end PEV company for their sports car application. On the next page, I'd like to put things in perspective. What type of BEV performance can we create with our product? On page 14, on the right, listed a general spec of a high-end BEV in the market. If we replace the battery with Microvast high-energy product that has been in the production since 2019, the NMC-2, the whole car can be fully charged in 30 minutes. With one full charge, our battery can offer 20% more mileage and roughly three times of the cycle life. With these parameters, that would lead to about 1 million mi of lifetime throughput, which is three to four times of a regular EV. Of course, we don't need 1 million mi from a passenger vehicle. Not yet. That's exactly our point. Our batteries are made for more demanding applications, and PEV commodity batteries cannot meet the lifetime requirements of a commercial vehicle. If multiple replacements take place, that would greatly damage the total cost of ownership. We won a billion-dollar level business from one of our European customers. This is one of Sascha's significant wins that he will share with you in his session. I'd like to talk about how we won technically. Considering the size of this project, we were competing with all major players in the world. Amongst all of them, Microvast offered the highest energy density, and Microvast was the only one that meet the fast charging and the long cycle life requirements from our customer. Our design-to-fit feature enabled by the vertical integration fit the customer's spec claim perfectly. The same technology is also being evaluated by a number of German PEV makers and the U.S. OEMs. To summarize, Microvast have developed products for PEV applications which exceeds the performance of a PEV commodity batteries and demonstrated our superior product with real-world deployment experience. An immediate question may arise, "How? How did you do it?" I would like to summarize our technological success into three columns on page 15. Microvast has the broadest chemistry, the capability of manipulation all the way into the material level, and a whole spectrum of battery products which have been verified and benchmarked that are highly differentiating. From the end user to chemistry, we have the complete approach, the full customization that leads to the faster development cycle products to market, higher efficiency, cheaper development cost, and better quality guarantees. Let's discuss each column in detail. On the left, the heart of a BEV is battery pack. All the energy in the pack come from the cells. The performance of the cell fundamentally depends on battery materials. To build the best, highest performance battery, that's what driven Microvast into the vertical integration, just like Apple building microprocessors. Microvast has over one decade of designing and manufacturing expertise in battery components, from cathode material, anode material, to separator, to electrolyte, gaining an intimate knowledge of how they interact with each other under specific conditions. That differentiated us from most of other battery makers who source their components from vendors. Also, it's important to note that cell makers do not have the right to produce the materials that they did not invent or have the license for. While Microvast has invented and manufactured all four key battery materials to ensure the unique performance in the cells and further into module and pack, also to ensure the leading time. The material patents are the strongest patents that are legally protected for decades, our success is founded on our deep technology portfolio, which is fully owned and protected by over 550 patents and thousands of knowhows within the company. Amongst all the battery material Microvast makes, two products stand out that no one else has in the world. The 100% polyaramid separator and the full concentration gradient cathode material. I will talk about them one by one. The current separator in the market are made of polyethylene or polypropylene. That's the same material as plastic bags and plastic bottles. Microvast manufactures one of the kind, high-temperature, 100% polyaramid separator that is based on the same material as bulletproof vest, with outstanding thermal, mechanical, chemical, electrochemical stabilities. Polyaramid as material itself is intrinsically non-flammable. It does not melt, it does not dissolve in any solvent. It's extremely difficult to handle, but Microvast managed to make it into 10 micrometers thick, several meters wide, thousands of meters long industrial separator product that increase the thermal stability of the current separator from 150 degrees Celsius to 300 degrees Celsius. That is nearly 600 degrees Fahrenheit. With this improvement, that we won a USABC project. That's the organization formed by GM, Ford, and Chrysler of award of $1 million to benchmark our polyaramid separator. This has been publicly announced by USCAR. One of the technical leaders stated, "The all-aramid commercial separator is the greatest breakthrough in lithium battery separator technology in the past 20 years." Another unique product of Microvast is full concentration gradient cathode material. Cathode material offers all the energy in a lithium-ion cell, and it takes more than 50% of the cost of a cell. Microvast is only one in the world who can produce the full concentration gradient cathode material in the industrial scale. As shown in the illustration, the FCG material differentiates from all the other homogeneous cathode material in the market. With this technology that we can be specific about the distribution of the transition metal elements, we can manipulate it at the atomic level so that we can maximize the energy contained in the particle with high safety and the lowest cobalt content to minimize the risk and to minimize the cost. The FCG material that we have been producing internally since 2018, that can offer 20% higher capacity than what's available in the market, and still yet, about 10% lower in cost. This has been validated by Argonne National Lab, and we also won a low-cost fast-charging USCAR project with this technology. Again, it has been validated by all the big three in U.S.A. Our technology is to supply these materials to passenger car makers and consumer electronics. This business strategy is clearly profit-oriented to ensure the faster ROI. On the second column, we have this whole spectrum of the cell product that has been verified and benchmarked. This allows Microvast to access the application of all industry. With this broadness, that makes us less vulnerable to the commercial success of any single chemistry. We talked about the LTO and NMC in the previous slide, and we are currently supplying LFP to SAIC Shanghai Motor, the largest OEM in China. In this project, we competed with CATL, the largest cell supplier in the world. We won by performance and by price. This one also demonstrated our production line has the high quality control up to the most stringent automobile standards. The last but not the least, the vertical integration. As I mentioned, to build the best, highest performance batteries drove Microvast into the vertical integration, which confers significant competitive advantage to shorten the product development cycle to win the race in the technology evolution. Two, that can minimize the cost, ensure the quality control from the materials to the end product, from R&D to mass production, and we can customize the solution to the client's needs. It also builds a higher bar for our competitors to reach, because material development takes decades. It also gives us the flexibility to work seamlessly with any customer. We can offer at the whole power solution level, at the pack level, module level, cell level, and in the future, at the component level. I'd like to wrap up this page by quoting one of our customer, a large integrator. They say, since Microvast can provide a fully integrated battery system based on industry-leading components and chemistry, some of their competitors do not offer the ideal chemistry. The other competitors cannot deliver the performance of today, leaving Microvast with the preferred battery solution and a two-year market lead for a new and growing application. On page 16, I'd like to give you a glance at Microvast mass production line. From all the four key battery materials to standardize the cells, module, and the pack. As for the material, we currently have 3,000 tons per year of the electrolyte production, has been running for 10 years, and we have 2,700 tons per year anode material production, 600 tons per year cathode material production, and 5 million square meter per year separator production. We also have the video available online for you to review more of our company facilities and the business. On the top right corner, there are two examples of our power system solutions that we offered for delivery trucks and commercial buses. We have invested in significant manufacturer capabilities to support existing contracts and the future growth. With that, I'd like to pass on to Sascha for him to tell you more about our commercial successes. Thanks, Wenjuan. Good morning, everybody. My name is Sascha Kelterborn, and I'm the Chief Revenue Officer. Vertical integration, as well as the variety of chemistries from hybrid over full-electric to fuel cell battery applications, and later to solid-state and other future technologies, are the basis of our commercial success, as my colleagues already mentioned. I need to underline this once more. Total cost of ownership calculation in our field of commercial vehicle solutions are very important, and with our battery technology, high safety, high energy density, as well as long cycle life, the TCO is easier to achieve than with classical mass-market passenger car standard chemistries. Our chemistries are the perfect fit for commercial vehicle applications, and for today, over-engineered for the classical car mass-market needs. This top-notch technology, which fits incredibly good to commercial vehicles. Let me jump to a few strategic customers of ours and show you the proof of concept, and start with FPT. We signed an industrial and commercial cooperation agreement with FPT, the global powertrain brand of CNH Industrial Group. We developed a full battery solution for FPT for commercial vehicle applications. We enabled FPT to design and assemble battery packs in-house at their facility in Turin, Italy. We supply FPT with battery models, which we manufacture in our new facility near Berlin, Germany, and sent to FPT in Turin, where they will be integrated into the locally produced battery packs. These solutions will be offered and integrated in CNH Industrial vehicles, as well as to other third-party customers. The second customer I would like to mention is TEDiF, the second biggest Tier 1 supplier in the world. The T level truck on the photo, which you see on the left side of the presentation, is a joint project between TEDiF and Microvast. In this partnership, TEDiF is delivering the electric motor and electric powertrain, and we are delivering the battery solution for this commercial vehicle. Again, through that, we have a new full electric platform solution. Dana, we do the same concept. Microvast is a strategic supplier of Dana. Dana is delivering the powertrain, and we are delivering the battery for electric platform solutions. Oshkosh agreed to make a $25 million strategic investment into the PIPE. We've signed a joint development agreement highlighting future battery collaborations integration. This long-term partnership will support Oshkosh technology strategy, which is focused on electrification and the development of advanced products. All these customers are focusing on electric platform concept, and this with the help of Microvast batteries. Let me mention another one, Cargotec. The port equipment customer. Applications run 24 hours, seven days a week. These are really heavy-duty applications, and for this, you need a special chemistry, which Microvast can offer. Let me mention two further customers. One is a new one, Heuliez Bus. Microvast was nominated as the battery supplier for the full electric bus, hybrid bus, as well as for the retrofit bus of the French bus OEM. Under this framework supply agreement, Microvast will supply up to 2,000 battery packs over the next three years, starting actually since March 2021. Microvast battery packs are expected to be certified fully with ECE R100 by June 2021, so that the vehicle can conform the ECE regulation. This is a very important message. To underpin our business plan from the business development side, the big advantage is that we are able to supply everything from battery components to separator to combating components. As an example, separator, full concentration gradient cathode material, as well as cell model and packs. Very important further to underline our business plan is that the Paris Agreement and the written commitment of the commercial vehicle OEMs is to be fossil fuel-free in 2040. This further underpins our strategy. Very important, by 2040, everything will be fossil fuel-free, at least in Europe. The last company I want to mention within my session is Gaussin. With the French company, Gaussin, we are also supporting a full electric vehicle platform concept with our battery solution. This new concept will be presented to the market within the next eight weeks. I'm very proud of that. Same we do, as mentioned already before, with FPT, with ZF, and Dana. Powertrain electric motors are coming from the tier suppliers, the battery is coming from Microvast. Microvast and tier suppliers are synchronizing it jointly with the aim to have an optimized electric vehicle platform solution available on the market. This is part of our business plan. With having said that, I will pass back to Shane. Thank you, Sascha. With only a couple more slides to go, we wanted to focus on our traditional bottoms-up forecast that you'll see, I think the page number is 18, showing our pipeline forecast for commercial vehicles only. It's by customer, by product, based on products that are already in production today. See, we have four regions. We had the criteria of, if you make the forecast, then weight it. We had 50%, 75%, 90%, and 100%. That showed a pipeline of $4.1 billion after we applied the weighted average to it. 100%, the criteria means you had to have a signed contract in place, committed from a customer. We identified $1 billion in opportunities between now and 2025. Some of the contracts extend beyond 2025, so through 2027, we had $1.5 billion in contracted revenue. Almost 25% each year in contracted revenue rated at 100%. We see that growing also over time as we focus more on the Western globe, where those long-term contracts are more common. You'll see the slide Revenue and EBITDA Margin by Market Segment. We simply brought the commercial vehicle, which is in blue, forward on the revenue by segment. You can see energy storage solutions. We start recognizing revenue in 2022. We've already started launching that strategy, just trying to give it time for the design wins to come in place in terms of revenue recognition. Battery components, we start selling the aramid separator and recognize revenue starting in 2023, and for the gradient cathode, not till 2025. EBITDA by market segment. You can see that our margins in the past have been tailored in China and Asia, where low price wins. In Europe and the U.S., the battery is tested, run through its paces, performance is confirmed, and then finally, and most importantly, it's valued and paid for. That's why you see the growing EBITDA margin over time. On slide 20, I just wanted to show you these several bullets. As you read those, I do have some closing remarks I'd like to make. Microvast has established itself as a battery technology innovator with field-proven product portfolio that has been validated by multiple marquee customer wins. As we continue to shift our focus to the Western markets, we see a $30 billion commercial vehicle market opportunity with only 1.5% of the vehicles electrified today. We see European regulations requiring 100% renewable energy by 2040. We see a potential $2 trillion U.S. infrastructure plan allocating $174 million for electric vehicles for opportunities such as 645,000 federal fleet vehicles, 50,000 diesel transit vehicles, and 20% of our school buses. The funding also calls for 500,000 electric vehicle charging stations and tax incentive packages. With so many promising opportunities on the horizon, Microvast is in a providential position to benefit from these significant tailwinds. We believe the electrification revolution is underway and will be an exciting and prosperous ride for many years to come. On that note, Jon, we'll turn it over to you for questions. Perfect. Thanks so much for that. Julie, can you give participants instructions on how they can log any questions live on the call? I'll get us started off with the first few. Certainly. Right. If anybody would like to ask a question, it's star then one on your telephone. If you want to withdraw your question, simply key star two. All questions will be answered in the order they are received, and you'll be advised when to ask your question. All other lines remain on listen- only. Just remind you again, it's star then one on your telephone. Thank you. Really enjoyed the presentation. I appreciate all of your comments. Maybe a few things to dig into. Something that really came across in your comments that I think is one mention about a two-year head start, as well as just having a lot more real-world experience. Can you talk a little bit through how that sort of helps in a little bit more detail on the selling process, sort of the data you can provide to customers, and how you protect that lead? Yeah, that's a good question, Jon. First of all, when we go, and I mentioned it earlier in my comments, when we go to the table and, let's face it, we serve a fairly conservative industry. When they want to know, hey, we're not the first ones to buy your battery, so we have to go through that process. Second of all, since we're in the commercial vehicle space, they're really interested in making sure, hey, can your battery last as long as the vehicle? 10, 15 years is what we're kind of targeting. How do you know? This is where the precipice of the conversation gets real. How do you know your battery will last that whole time? Because they're measuring the total cost of ownership. Will they have to replace that battery one, two times, or is it really going to last? We can sit down and say, look, we have operational data. Eight, 10 years on the road, we can actually show it to them. Most of our competitors have to go and say, "Okay, well, this is what we know for the last one, two, three years." They kind of draw this dotted line up and to the right, saying, "Well, based on this trend, it will really make it." We are able to take that theoretical argument and make it an actual confirmation and validation, and it builds a lot of confidence early on in the discussion. In terms of how do you keep that, well, we just keep driving performance higher and higher, shooting from, if we're focused at 10 and 15, then how do we get to 20? How can we drive the energy density and then use less battery? Those are the types of things that we're driving for to keep that lead that we currently have today. Got it. Great. Thank you. Maybe just a question on you also have some pretty interesting strategic investors, but just a little bit on the nature of any offtake agreements. Are they sort of fixed price? Are they fixed commitments on volume? Just how does that sort of play out with the partnerships and offtakes? Thanks. Sascha, you want to take that? Yeah, sure. Jon, it's a good question. In general, we cannot really do a deep dive, even if we would love to, because we are very happy about our very positive long-term agreements due to the fact that we have signed NDAs. More or less, you have various of different strategic agreements. Some offer you a minimum or maximum volume, then you go in a conservative style, you judge the volume over the next years in order to be always on the safe side. Others, in certain areas, you have price escalation formulas. In other areas, you have a certain price fixed. It really depends on the strategic customer. It really depends on that topic. Certain customers do want to have a certain volume guaranteed. This is all negotiations at the end, but I cannot really focus on one key customer right now because we have a lot of NDAs which are signed, and I cannot do a deep dive in that context. No, completely understand. Appreciate that. Maybe just one more for me before we go to the line. It seems with your geographic footprint, there's a specific strategy to be diversified. Can you talk about the pros and cons of having this sort of global production footprint rather than centralizing? I would just comment quickly and then pass it on back to Shane. The global footprint is very important for us to have at least three production footprints because in order to participate in global tenders of our customers, then this is the only way how to do so. With just one manufacturing, it's very difficult because the tenders require today a certain localization in different regions, and this is very important with this. That's the reason why we are also going to the market in order to increase our production capacity. I will pass it back to Shane because he can give you a further deep dive there. Yeah, absolutely, Sascha. I totally agree with you. There's a logistical aspect. Some of these packs can weigh a ton, a couple of tons. Being in close proximity to your customer has obviously a lot of advantages. Whether we want to or not, there's a political element to energy, as we all frequently read about. Each of these major continents want the battery built in their area of the region to avoid any form of dependence. Also sometimes there's tariffs involved that make it unattractive to build from one location. For those reasons, these are the beginning of those three areas, and I think we have it in the right place, and we'll just continue to expand both in Europe, U.S., and China going forward. Perfect. Thank you for that, Sascha and Shane. Julie, do you have any questions on the line? We do indeed. We have two. The first one comes from the line of [Michael Lorenz]. Please go ahead. Sir, you're live into the call. Thank you. This is a question for Dr. Mattis. Dr. Mattis, are you using polymers in your modules? If so, what needs are the polymer materials not meeting in regards to your critical requirements? Currently, polymer is used in the module and the pack. Mostly for the insulating and the aspects. Some of the polymers need to have high insulation property, and they start to need to also have good thermal conduction so the insulating is for the electrical aspects and some for the thermal aspects. With this new requirement coming from the thermal propagation, so polymer is one of the solutions to prevent that happening in the module and the pack level. Oh, you're not using the polymers for the frames of the module? We do. We do use that for the frame and the module. Mostly for one, it's easier for the customization and lighter weight, and it also- Yeah supports the electrical insulation. Okay. Where are you doing the manufacturing of the energy storage system batteries? Is that being done in Tennessee? Yeah, this will be done in Tennessee. We are currently building 2-4 GWh from a cell to module to pack production in Tennessee. This would support the North American markets from commercial vehicles to energy storage. Excellent. Thank you very much. Thank you, Michael. Thank you for your question. We do have one more, and it's from [Cameron Kindar]. Please go ahead. You're live into the call. Hey, guys. Thank you for taking the time today. Two questions. The first is, over the next two to five years, as more and more companies enter this space, how are you guys thinking about maintaining adequate supply of the raw materials that are needed for cell development? Cameron, Microvast has been in this business for over 15 years. We have been in production for over 10 years. With that, we have created very good relationship with our suppliers, build multiple strategy to supply agreements with the key suppliers. That's one of the key methods we apply for global supply. For the future supply, we have the recycling strategy developed internally. Although some of our products have been running in the market for over 10 years, but they are still maintaining above 85% of the retention. We are getting prepared but have not received our packs from the market yet. When the time is ready, we will be able to recycle our own products because we also have our own cathode material production line. With that technology altogether, we will be able to make the recycled products into brand-new, high energy density, better performance products. Great. Thank you guys for that. The second one, just be on the manufacturing side. As you continue to grow and scale this business that you, as you mentioned, you've been in it for a long time, how are you potentially managing any potential risks from accelerated growth, particularly as it relates to manufacturing? What safeguards do you have in place to really ensure smooth execution over the next three to five years? Cameron. Microvast planning is everything is melted together, is organic. We do not build the production capabilities without the high confidence of the order, because the evaluation, as we previously mentioned, can take about one to three years, depending on the application. We have built multiple production lines. With that experience in-house, we will be able to have the production line started in time when we have the contract in horizon. Everything is planned. We would try to avoid any unexpected type of explosion, this type of demand. It will be all planned all together with the sales, the production, the supply agreements that should be all in place. Great. Thank you, guys. We'll also have some flexibility going forward. For example, we could ship cells from the U.S. or China to Germany. We can ship all the product from China. Even if it's off by a month or two, there'll be some inherent flexibility just by our global footprint. Got it. That's really great to know, especially as geopolitical risks continue to increase over time. Absolutely. Glad to know you guys are already thinking far ahead. I'm happy to hear from you guys again, and best of luck with the rest of the progress. Appreciate it. Thank you. Thank you, Cameron. We do have two more questions. The next question comes from the line of [Will Stone]. Please go ahead. You're live into the call. Hi there. On one of the slides, you show that the batteries are compatible with four different cell technologies, cell chemistries. Is there going to be a winner in terms of there's one that people adopt over time? What's the thinking behind staying compatible with so many rather than singling in on one? I'm sorry. That's all right. Can I repeat? Yeah. I did not quite get your question. Were you asking as it's all the chemistry in the market, what's more to come? Yes. You show four different cell chemistries. Mm-hmm. Yeah. I wondered whether there's a kind of emerging winner, or do they all- Correct have very different applications, and how you see that dynamic evolving. Oh, yes. Yeah. A great question. We have these four specs, each to meet quite a different demand in different industry. What's dominating the passenger vehicle right now is mostly NMC chemistry. That's the major chemistry from the LG, Samsung, SK. Yeah, Panasonic, Tesla use NCA. It's essentially the same chemistry. LFP has a good market in the lower performance, and low-cost type of applications, such as the energy storage. LTO is a very heavy duty product. With our technology, this whole bus can be fully charged within six minutes and it can do more than 20,000 cycles. That's the product we have sent out in 2011, and it's still running and maintains about 85% of the retention. It's also a great choice for start- stop battery for the HEV mining trucks, the AGVs to move anything including the huge containers. Also a good choice for the wind storage frequency regulation. It's also the safest battery, the lithium battery. Would it be considered to replace the lead acid battery in Manhattan, for example. Each technology have its unique selling points. Microvast have all of them, that also to reduce our risk of any single chemistry would be winning one major application. What prevents people just choosing the best chemistry? It sounds like LTO is best in terms of its profile. Yeah. I guess is cost prohibitive on that one? Yes. LTO has a lower energy density. The energy density of the LTO, it's about less than half of NMC-2. Yeah, it's about one third actually. Yeah, its energy density prevented it from putting into the BEV. It would be a good choice for a smaller pack, just like a HEV or a start to stop battery. It's more durable. Thank you. Yeah, it's more higher. Yeah. Perfect. Thank you. Thank you for your question, Will. We do have one more question, and it comes from the line of David Shi]. I'll just pop you through now. You're live into the call. Please go ahead. Great. Thank you. Thanks for the presentation. Curious about a couple things. One, what form factors of cells are you manufacturing? With the Tennessee plant, which chemistries and form factors do you plan to manufacture there? We make pouch cells. Okay. In the R&D center, we look into all three form factors. In our production line, we make pouch cells, the stacking pouch cells. Okay. In the Clarksville, Tennessee, we can actually make all chemistry starting with NMC chemistry. Any thoughts about moving, say, the prismatic? We will be very careful moving in there. We will check into the IP space. That is being evaluated, yes. Okay. Thank you. Thank you for your question. There are no further questions on the platform. Okay. Great. As we're about a minute over, we're going to start to wrap there. before I turn it over to Shane and/or Alan, if you'd like to make some closing comments. Just to wrap it up, I want to thank, first of all, Julie, the operator, thank you so much for helping us today. Thank you to all the UBS clients for the questions. Really appreciate it. As we're a couple of minutes over the hour, I always like to remind people, these calls are really meant to be an introduction, and if you'd like to sort of dig deeper into Microvast, do feel free to reach out to me or directly to the company. I'm happy to connect you. with that, similarly, just a reminder to participants on this call, we have a number of calls still coming up in April in the call series. We'll be discussing recreational EVs with Taiga Motors on Friday, as well as we'll be doing charging infrastructure, residential solar, improving EV efficiency, and electric and gas industry sustainability goals later this month. If you need details for any of those calls, do feel free to reach out to me directly. With that, I'd like to hand it back over to you, Shane. I'd like to thank you, Dr. Mattis, Sascha, and Alan for the presentation today. It's a very interesting story, and I really appreciate you taking some time out of your day to share with UBS and UBS clients. Back over to you for any closing comments, Shane. Absolutely, Jon. We're very thankful for the invitation, UBS Energy, everyone that joined the call today. Perhaps, Jon, you said it well, this is an introduction maybe to Microvast. Not too familiar with us, but now we've gotten to know each other. We're off and running. It's an exciting time to be in electrification, and hopefully this is the first of many meetings that we get to meet with your audience going forward. Thanks again, Jon. Perfect. We'll wrap it there, Julie. Everyone have a great day. Thank you, Jon. Thank you. That concludes your conference call for today. You may now disconnect. Thank you for joining, and enjoy the rest of your day.