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Property, Plant and Equipment, net
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net

7. Property, Plant and Equipment, net

 

Property, plant and equipment as of December 31, 2020 and 2021 consisted of the following:

 

   December 31,
2020		   December 31,
2021		 
Buildings  $28,150,137   $48,418,782 
Leasehold improvements   
-
    5,543,792 
Machinery and equipment   32,753,952    58,899,248 
Office equipment   258,458    1,200,758 
Motor vehicles   197,790    486,570 
    61,360,337    114,549,150 
Impairment   (8,980,020)   (9,194,132)
Accumulated depreciation   (11,339,947)   (15,312,245)
Carrying amount  $41,040,370   $90,042,773 

 

During the years ended December 31, 2020 and 2021, the Company incurred depreciation expense of $2,677,238 and $3,664,917, respectively.

 

The Company has not yet obtained the property ownership certificates of the buildings in its Dalian manufacturing facilities with a carrying amount of $24,611,468 as of December 31, 2020. The Company has obtained the property ownership certificates of the buildings on October 22, 2021.

 

During the course of the Company’s strategic review of its operations in the years ended December 31, 2020 and 2021, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately $4.3 million and nil, respectively. The impairment charge represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated fair value of the Company’s production facilities in Dalian primarily for the production of high-power lithium batteries.