CBAK Energy Announces $11.6 Million Order from Africa’s largest EV player

Rhea-AI Summary

CBAK Energy Technology (NASDAQ: CBAT) has secured an $11.6 million order from Africa's largest EV company for its Model 32140 large LFP cylindrical batteries. The batteries will be supplied through CBAK's subsidiary, Nanjing CBAK New Energy Technology, and integrated into the customer's electric motorcycle fleet across Africa. The partnership is expected to generate additional orders worth up to $55 million. The African customer, known for its battery-swapping technology and locally manufactured electric motorcycles, is leading the continent's transition from fossil fuel-based transport to sustainable mobility solutions. The collaboration aims to accelerate EV adoption in emerging markets while providing affordable and accessible transportation options specifically designed for African conditions.

Positive

• Secured significant initial order worth $11.6 million with potential follow-on orders up to $55 million
• Strategic expansion into emerging African EV market through partnership with continent's largest EV player
• Integration into established battery-swapping network indicates long-term revenue potential
• Partnership validates CBAK's Model 32140 battery technology and market competitiveness

Negative

• Heavy reliance on single customer for significant portion of future revenue
• Emerging market risks including political and economic instability in Africa
• Potential challenges in payment collection and currency fluctuations in developing markets

Insights

Battery Technology & EV Market Analyst

CBAK Energy secures $11.6M battery order from major African EV player, with potential follow-on orders of $55M, strengthening international market presence.

CBAK Energy's $11.6 million order from Africa's largest EV company marks a significant international expansion move that could eventually grow to $55 million in follow-on orders. The deal centers on CBAK's Model 32140 large LFP cylindrical batteries, which will power electric motorcycles across the African continent.

This partnership is strategically important for several reasons. First, it represents CBAK's growing footprint in emerging markets where EV adoption is accelerating rapidly. Africa presents a massive untapped opportunity for electric mobility solutions, particularly in the two-wheeler segment where adoption barriers are lower than for passenger cars.

The choice of LFP (lithium iron phosphate) chemistry is particularly well-suited for the African market conditions. LFP batteries offer superior thermal stability and longer cycle life compared to NMC alternatives, making them ideal for hot climates and heavy-duty commercial applications like motorcycle fleets. The battery-swapping model mentioned also aligns perfectly with regions having less developed charging infrastructure.

For CBAK, this order potentially represents just the beginning of a much larger revenue stream. The indicated $55 million in potential follow-on orders suggests this African partner is experiencing significant growth and views CBAK as a long-term strategic supplier. For context, this single relationship could become a substantial revenue contributor to CBAK's overall business if fully realized.

DALIAN, China, June 09, 2025 (GLOBE NEWSWIRE) -- CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the "Company"), a leading lithium-ion battery manufacturer and electric energy solution provider in China, today announced that its wholly-owned subsidiary, Nanjing CBAK New Energy Technology Co., Ltd. ("Nanjing CBAK"), has received a sizeable order from Africa’s largest EV player with the fastest energy distribution network aided by battery swapping.

The order, valued at approximately US$11.6 million, primarily comprises CBAK Energy’s advanced Model 32140 large LFP cylindrical batteries. Looking ahead, the Company anticipates follow-on orders from this customer totaling up to US$55 million. As part of this strategic partnership, CBAK Energy will continue to supply its high-performance Model 32140 batteries for integration into the customer’s rapidly expanding fleet of electric motorcycles across the African continent. This collaboration underscores a shared commitment to accelerating the adoption of sustainable mobility solutions in emerging markets.

This customer is Africa’s leading electric vehicle (EV) company, revolutionizing the continent’s transportation sector. Renowned for its groundbreaking battery-swapping technology and electric motorcycles specifically designed for African roads and riders, the customer is driving a transformative shift away from imported, fossil fuel-based transport. By delivering affordable, accessible, and locally manufactured electric mobility solutions—made in Africa, by Africans, for Africa and the world—it is redefining sustainable transportation across the region.

"We are excited to partner with this customer to support their mission of promoting electric mobility in Africa," said Zhiguang Hu, Chief Executive Officer of CBAK Energy. "This significant order not only highlights the growing demand for our high-quality battery solutions but also reinforces our strategic focus on expanding our market presence in emerging regions. We look forward to contributing to the sustainable development of the electric mobility sector in Africa and beyond."

About CBAK Energy

CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium batteries and raw materials for use in manufacturing high power lithium batteries. The applications of the Company's products and solutions include electric vehicles, light electric vehicles, electric tools, energy storage, uninterruptible power supply (UPS), and other high power applications. In January 2006, CBAK Energy became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK Energy has multiple operating subsidiaries in Dalian, Nanjing and Shaoxing, as well as a large-scale R&D and production base in Dalian.

For more information, please visit ir.cbak.com.cn.

Safe Harbor Statement

This press release contains "forward-looking statements" that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements.

The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

For further inquiries, please contact:

In China:

CBAK Energy Technology, Inc.
Investor Relations Department
Email: ir@cbak.com.cn

FAQ

What is the value of CBAK Energy's (CBAT) new order from Africa?

CBAK Energy received an initial order worth $11.6 million, with potential follow-on orders totaling up to $55 million.

What type of batteries will CBAK Energy (CBAT) supply to the African EV company?

CBAK Energy will supply its Model 32140 large LFP cylindrical batteries for electric motorcycles.

Who is CBAK Energy's (CBAT) new African customer?

The customer is Africa's largest EV company, known for its battery-swapping technology and electric motorcycles designed specifically for African markets.

How will this order impact CBAK Energy's (CBAT) market expansion?

This order represents CBAK Energy's strategic expansion into emerging African markets and validates their battery technology in the global EV sector.

What is the significance of the battery-swapping network for CBAK Energy (CBAT)?

The customer's battery-swapping network provides a established distribution system for CBAK's batteries and indicates potential for long-term recurring revenue.