This Lithium-Ion Battery Technology Stock Jumped 2,800% in a Year: Is it a Must Buy?

Microvast Holdings (Nasdaq:MVST) stock surged by 19% on Wednesday and is up 2,806% in the past one year.

The company's all-solid-state battery (ASSB) technology has primarily driven tangible results for the company. This technology is considered safe and more efficient as it eliminates liquid electrolytes for rapid scalability. Microvast has managed to limit expenses despite significant investments in the ASSB technology, which has improved profitability.

The company reported adjusted EBITDA of $25.9 million (£19.2 million) in Q2, up from a negative $78.4 million (£58.3 million) a year earlier. Moving forward, the ASSB battery technology is expected to boost the company's financials as the demand for safety-sensitive electric vehicles, grid storage, and robotics rises.

Microvast's Q2 revenue also reached a record high of $91.3 million (£67.9 million), a 9.2% year-over-year jump from $83.7 million (£62.2 million) in the prior year quarter. The company retained its revenue guidance of $450 million to $475 million (£334.8 million to £353.4 million) for 2025.

'This growth is matched with gross margin expansion to 34.7%...We also achieved a positive adjusted EBITDA of $25.9 million. These results are a testament to the increasing demand for our advanced battery solutions and the effectiveness of our relentless focus on profitability and operational efficiency,' Microvast founder and CEO Yang Wu had stated in a press release.

Huzhou Phase Expansion to Drive Market Share Gains

Microvast expects to complete installation and commissioning of production equipment for its Huzhou Phase 3.2 expansion in 2025 for capacity expansion to match robust customer demand.

The major boost within its primary market, China, is expected to offer significant upside to its market share. Production capacity is expected to increase by 2 GWh in Huzhou to manufacture its high-energy nickel manganese cobalt (NMC) cell technology.

According to reports, the global NMC cell market is expected to grow at a compound annual growth rate of 15.1% from 2025 through 2034. Meanwhile, the China EV market is expected to grow at a CAGR of 17.1% through 2030, making Microvast well-positioned to capitalise on the emerging trends.

Discounted Valuation is Appealing

Furthermore, the company is priced at 17X forward 12-month earnings per share, much lower than the industry's average of 30.9X. The company's discounted valuation, despite being capital-intensive, is appealing. It might indicate that investors could be overlooking its operational capabilities or future growth potential.

Jim Cramer also recently shared his view on the stock.

'Alright, that's a great spec for now. We know that there's a lot of interest in Washington on battery. We've seen that. Therefore, it could extend to these guys. I don't know if it's the case, but I'd hold onto it,' he had said.

In early October, the company also closed a follow-on equity offering of $125 million (£93 million) of common shares. At the same time, it also presented the latest battery technology advancements at the Battery Show North America 2025 in Detroit. The capital raising, combined with the ongoing technological advancements, further supports Microvast's roadmap to expand battery production amid high demand in the EV sector.

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