CBAK Energy Announces Expansion in Nanjing: Equipment Procurement Completed and Trial Production Set for May 2025, Adding 3GWh of Capacity

Rhea-AI Summary

CBAK Energy (NASDAQ: CBAT) has announced significant progress in its Nanjing expansion project. The company has completed procurement agreements and prepayments for equipment needed for two new production lines in Phase II. The Phase I facility, operating since late 2021, currently runs at full 1.3GWh capacity across two lines. The new Phase II lines, scheduled for trial production by May 2025 and full production by late 2025, will add 3GWh of annual capacity.

The new lines will primarily produce Model 32140 large cylindrical battery cells and can be modified to manufacture the upgraded Model 40135 cells for portable power supply and home energy storage systems. This expansion is part of Phase II's larger planned capacity of 27GWh, driven by increased demand for the company's 32140 battery cells in 2024.

Positive

• Phase I facility operating at full 1.3GWh capacity, indicating strong demand
• Addition of 3GWh annual production capacity through two new lines
• Production line flexibility to manufacture both 32140 and upgraded 40135 models
• All equipment procurement completed and prepaid for Phase II expansion

Negative

• Significant wait time until production begins (May 2025 for trials, late 2025 for full production)
• Large capital expenditure required for equipment prepayment

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DALIAN, China, Dec. 30, 2024 /PRNewswire/ -- CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy" or the "Company"), a leading manufacturer of lithium-ion and sodium-ion batteries and electric energy solutions in China, today announced that its wholly-owned subsidiary, Nanjing CBAK New Energy Technology Co., Ltd. ("Nanjing CBAK"), has successfully signed procurement agreements with all suppliers and completed the prepayment for all necessary production equipment and utilities required for the first two production lines at its Phase II project in Nanjing.

Launched in 2021, the Company's Nanjing project is structured in two phases. Phase I began mass production of its flagship 32140 large cylindrical lithium-ion cells in late 2021, with an actual capacity of approximately 1.3GWh, distributed across two production lines. Phase II, representing a significant expansion, is designed to scale up to a planned capacity of 27GWh. Driven by the soaring demand for the Company's 32140 battery cells in 2024, Phase I is currently operating at full capacity. In response to urgent client requirements, the Company has decided to fast-track the progress of Phase II. Under the current timeline, the first two production lines at Phase II are scheduled to enter trial production by May 2025, with full-scale mass production expected to begin by late 2025.

These two production lines are specifically designed for the production of Model 32140 large cylindrical battery cells. With certain modifications, they can also be adapted to efficiently manufacture the upgraded Model 40135 cylindrical battery cells. The Model 40135 is an advanced product from the 32140, specifically tailored for portable power supply applications and home energy storage systems. Together, these two production lines will have an annual production capacity of approximately 3GWh.

Zhiguang Hu, Chief Executive Officer of CBAK Energy, commented, "We are thrilled to announce the acceleration of our Phase II project in Nanjing. As part of our broader expansion plan, the addition of these two production lines will significantly enhance our capacity to meet the surging demand from our clients. The flexibility of one of the lines to produce the Model 40135 battery cells opens up exciting new opportunities in the energy storage sector. We will continue to keep our investors informed as we reach key milestones in this transformative project."

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 

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SOURCE CBAK Energy Technology, Inc.

FAQ

When will CBAT's new Nanjing Phase II production lines begin operations?

Trial production is scheduled to begin by May 2025, with full-scale mass production expected by late 2025.

How much additional production capacity will CBAT's new Nanjing lines add?

The two new production lines will add approximately 3GWh of annual production capacity.

What battery models will CBAT produce at the new Nanjing facility?

The facility will primarily produce Model 32140 large cylindrical battery cells and can be modified to manufacture Model 40135 cells.

What is the total planned capacity for CBAT's Nanjing Phase II project?

The total planned capacity for Phase II is 27GWh.

How much capacity does CBAT's Nanjing Phase I facility currently have?

Phase I currently operates at approximately 1.3GWh capacity across two production lines.