TCC's Nelson Chang Apologizes for Kaohsiung MQE Battery Plant Fire, Initiates Diversified Strategies Including Overseas OEM to Ensure Uninterrupted Battery Cell Supply

In response to the fire accident at Molie Quantum Energy Corporation (MQE) battery plant in Xiaogang District of Kaohsiung City, TCC Group Holdings Chairman Nelson Chang today expressed his sincerest apologies on behalf of the management team to shareholders and the public. He stated that this fire burned more than just a battery factory; it was a serious question posed to TCC and to Taiwan's emerging battery cell industry. Chang emphasized that TCC's answer is to face the challenge for its customers, its young team and colleagues. High-level executives at TCC's operational headquarter have also voluntarily taken a 20% salary cut. To ensure an uninterrupted supply to customers, TCC has promptly initiated diversified contingency plans, including accelerating overseas OEM cooperation, allocating production capacity at E-One Moli Energy Corporation Tainan plant, and reassessing overseas plant establishment. Chang pledged that TCC and Molicel will transform this painful lesson into more complete and safer standards with a rigorous and pragmatic attitude.

Chang stated, "In humanity's journey from traditional energy to clean energy, battery cell technology is an indispensable core component. However, this path is full of hardship. Over the past two years, we have seen many once-ambitious battery cell industries in Europe and America retreat due to low-price competition; many battery cell plant construction projects have either failed, been delayed, or canceled". The competition in the battery cell industry is not just a battle of technology but also a war of will. Chang, who was on a business trip in the United States when the fire broke out, rushed back to Taiwan within 24 hours and has since traveled to Kaohsiung four times in one month to direct the internal investigation. He expressed with a heavy heart, "If TCC, as an enterprise that has invested significant resources and regards the battery cell industry as one of its core future developments, chooses to retreat because of a single setback, what kind of impact will we have on Taiwan's emerging battery cell industry? If we choose to give up, we would not only fail to meet our customers' expectations but also potentially become a stumbling block for Taiwan's new technology development and even affect the progress of global cutting-edge technology".

Chang admitted that the accident occurred just as MQE battery plant was operating at full capacity with a filled order book and preparing to move forward significantly. He also acknowledged that while Molicel's R&D technology has gained international recognition, there is still significant room for optimization in factory management. TCC's operational headquarter, as the supervisory unit, feels a great and inescapable responsibility for the significant financial impact caused by the subsidiary's fire. The TCC operational headquarter team, led by Group CEO Nelson Chang and President Roman Cheng, has voluntarily taken a pay cut. High-level executives, including CFO, Vice Presidents at Operation Headquarters, President of Cement and Environmental Protection Business (Asia), President of Charging and Storage Business (Asia), President of Asset Management Business, reduce their monthly salary by 20% from August until the end of the year. For personnel directly involved in the fire incident, the group will hold the general manager of the battery cell business, the plant managers, and all levels of supervisors in the affected production section accountable according to their responsibilities. Disciplinary measures may include penalties, salary reductions, or reassignment to ensure that higher standards of policies and procedures are established and implemented in the future, thereby comprehensively enhancing operational safety protections.

Chang clearly stated that the company will seek to collaborate with the world's top teams in the future to forge a more optimized business model for the battery cell division, protecting the interests of all employees and shareholders. In its one-month fire report, Molicel also confirmed for the first time plans to accelerate overseas OEM and re-evaluate overseas plant establishment. The plan is for partners in Southeast Asia to take over the production of Molicel's first-generation high-end ternary lithium battery products. The first batch of Molicel's first-generation products is expected to be produced in early October this year. However, Molicel president Casey Shiue emphasized that "the core R&D technology remains in our hands, and Kaohsiung MQE battery plant will focus on the second, third, and fourth-generation products, which will be produced at MQE to ensure key technology remains in Taiwan". Additionally, E-One Moli Energy Corporation Tainan plant has begun backing up some of Kaohsiung MQE battery plant 's production capacity since early August. Furthermore, due to many important customers expressing their desire to help Molicel establish plants overseas after the fire, TCC is re-evaluating and expanding its existing plans to set up overseas plants to ensure the long-term stability of the international battery cell supply. When asked about the specific progress of overseas plant establishment, Chang stressed that the priority is to meet the original customer requirements. The next generation of products is almost designed, but further development of the battery cell business requires more evaluation and time, and it also needs approval from the board of directors.