Workers being laid off at Clarksville EV battery plant before production begins

An EV battery manufacturer building a facility in Clarksville is laying off employees before the first battery has even been produced there. 

According to Clarksville Now, Microvast laid off what was described as a large number of employees. The company said three years ago when the plant was announced that it planned to have a workforce of nearly 300. On Friday, however, termination letters went out to a group of employees who were told the "reduction in force" was effective immediately.

The memo from Microvast CEO Yang Wu, obtained by Clarksville Now, stated, "Microvast – like other companies across different industries and geographies – is going through economic ups and downs in line with current difficult market conditions. Although we feel confident and excited about the future of our U.S. operations, we need to make difficult decisions now to put us in a position to fully realize our potential. We currently are devoting our efforts to reducing our costs and obtaining new financing. The expense reduction will involve workforce adjustments and other cost-saving strategies.”

Microvast had two other facilities planned for the Hopkinsville and Clarksville area, but both were canceled last year. The remaining plant was supposed to be operational by the end of 2023, but difficulty in finding financing stalled the project. 

Josh Ward, vice president of industrial development with the Clarksville-Montgomery County Economic Development Council told Clarksville Now that even though Microvast got state and local tax incentives, there are provisions to get that back in the event the plant does not get completed. Ward said, “We just want people to know their taxpayer dollars are protected.”