Microvast (NASDAQ:MVST) stock is up 5% today after announcing new lithium-ion battery cells and a slew of upgrades. This has been an overall positive day for electric vehicle (EV) stocks.
So what else do you need to know?
Like many EV-related stocks, Microvast has seen its market capitalization more than halve from its 52-week high. That means that as interest returns to this sector, MVST stock is certainly one investors should be watching.
Why? Microvast focuses on developing battery systems for electric vehicles and energy storage systems. Using a range of materials and technologies, its products span a wide spectrum of the battery market. Accordingly, as a picks-and-shovels play on EVs, there’s a lot to like about Microvast right now.
On the product development side, Microvast has some news investors seem to like. Let’s take a look at the key catalyst taking shares of this battery maker higher today.
MVST Stock Surges on Launch of Next-Generation Battery Technology
Today, Microvast announced that it has upgraded some of its older battery packs. It has also added two more to its portfolio.
To start, the company updated its Gen 4 battery packs to give EV manufacturers more of a punch. Featuring similar dimensions, Microvast reported these next-generation battery packs can deliver up to 20% more energy and power. Additionally, new safety features and improved thermal management are noteworthy upgrades.
In terms of the two new lithium-ion battery cells, investors seem to like what they see. Microvast reported that these new cells “optimize vehicle design in terms of energy density and cycle life, delivering improved overall performance and reducing total cost of ownership while preserving fast-charging capabilities.” The company says it expects these battery cells will “become pivotal revenue drivers for our business going forward.”
As the EV sector continues to improve, companies like Microvast will be key to watch from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
