Strategic expansion adds 1.6 million square feet of EV production capacity rent-free in China, boosting Phoenix's global manufacturing footprint to nearly 2 million square feet

ANAHEIM, CA / ACCESS Newswire / June 30, 2025 / Phoenix Motor Inc. (OTC PINK:PEVM), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, today announced a significant expansion of its global manufacturing capabilities through a newly signed agreement to utilize over 1.6 million square feet of existing EV production facilities in Henan Province, China-rent-free for an initial 10-year term. The Company will begin producing electric vehicles for the Latin American and other international markets at this location, while also in-sourcing selected EV component manufacturing to support U.S. operations.

This strategic move increases Phoenix's total global manufacturing footprint to nearly 2 million square feet, positioning the Company to capitalize on growing global EV demand and substantially increase production capacity and revenue potential. The expanded footprint will support manufacturing and assembly of Phoenix's EdisonFuture-branded EVs-including EF2, EF3, MEV1, MEV2, and MEV3 models-tailored for international markets

"This partnership represents a significant expansion of our global manufacturing infrastructure and a pivotal step in Phoenix's international growth strategy," said Denton Peng, CEO of Phoenix Motor Inc. "With this addition, Phoenix now operates close to 2 million square feet of EV manufacturing capacity worldwide, reinforcing our ability to meet accelerating demand from both the U.S. and global markets."

Strategic Impact

In addition to manufacturing vehicles destined for Latin America and other overseas markets, the facility will also serve as a production hub for selected EV components destined for Phoenix's U.S. operations-supporting its facilities in Anaheim, California and Greenville, South Carolina.

This expansion is expected to significantly enhance Phoenix's production capacity and operational efficiency while reducing time-to-market for key international offerings.

EdisonFuture Global EV Portfolio

Vehicles to be produced under the EdisonFuture brand at the new facility include:

• EF2: A stylish, intelligent SUV designed for dynamic driving and lower total ownership cost.

• EF3: A high-efficiency crossover with a 250-mile EV range and intelligent safety features.

• MEV Series (MEV1, MEV2, MEV3): Compact, city-friendly EVs combining affordability, style, and performance-ideal for emerging urban mobility markets.

The agreement was entered into with Shandong Maolin Sida Automobile Co., Ltd., Mengzhou Enbowei Automobile Technology Co., Ltd. ("Enbowei"), and the individual shareholders of Enbowei. As part of the agreement, Phoenix will establish a wholly owned subsidiary in Mengzhou, China, to manage operations at the site. Importantly, the agreement also grants Phoenix the option to acquire a majority stake in Enbowei after five years of continuous operation.

About Phoenix Motor Inc.

Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: phoenixev.ai.

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These risk factors include, among others, those related to our ability to raise additional capital necessary to grow our business, operations and business and financial performance, our ability to grow demand for our products and revenue, our ability to become profitable, our ability to have access to an adequate supply of parts and materials and other critical components for our vehicles on the timeline we expect, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.

Contact:
IR@phoenixev.ai

Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
PEV@redchip.com

SOURCE: Phoenix Motor Inc.