CBAK Partners with Kandi to Localize Lithium Battery Facilities in the U.S. in Phases
CBAK Energy Technology (NASDAQ: CBAT) and Kandi Technologies have announced a strategic partnership to establish two lithium battery production facilities in the United States. The collaboration involves two joint ventures:
1. A near-term battery pack assembly facility (90% Kandi-owned)
2. A long-term battery cell manufacturing facility (90% CBAK-owned)
The partnership aims to serve North America's off-road and recreational vehicle markets, valued at $16.7 billion in 2024 and projected to reach $25.0 billion by 2030. CBAK will initially supply battery cells from its planned Southeast Asian facility until the U.S. manufacturing plant is operational. The initiative aligns with U.S. Inflation Reduction Act incentives and focuses on developing high energy density battery systems for off-road and powersports vehicles.
CBAK Energy Technology (NASDAQ: CBAT) e Kandi Technologies hanno annunciato una partnership strategica per stabilire due impianti di produzione di batterie al litio negli Stati Uniti. La collaborazione prevede due joint venture:
1. Un impianto di assemblaggio di pacchi batteria a breve termine (90% di proprietà Kandi)
2. Un impianto di produzione di celle batteria a lungo termine (90% di proprietà CBAK)
La partnership mira a servire i mercati dei veicoli fuoristrada e ricreativi del Nord America, valutati $16,7 miliardi nel 2024 e previsti raggiungere $25,0 miliardi entro il 2030. CBAK fornirà inizialmente celle di batteria dal suo impianto pianificato nel Sud-est asiatico fino a quando l'impianto di produzione negli Stati Uniti non sarà operativo. L'iniziativa è in linea con gli incentivi dell'Inflation Reduction Act degli Stati Uniti e si concentra sullo sviluppo di sistemi di batterie ad alta densità energetica per veicoli fuoristrada e powersports.
CBAK Energy Technology (NASDAQ: CBAT) y Kandi Technologies han anunciado una asociación estratégica para establecer dos instalaciones de producción de baterías de litio en los Estados Unidos. La colaboración implica dos empresas conjuntas:
1. Una instalación de ensamblaje de paquetes de baterías a corto plazo (90% propiedad de Kandi)
2. Una instalación de fabricación de celdas de baterías a largo plazo (90% propiedad de CBAK)
La asociación tiene como objetivo atender los mercados de vehículos todoterreno y recreativos de América del Norte, valorados en $16.7 mil millones en 2024 y se proyecta que alcancen $25.0 mil millones para 2030. CBAK suministrará inicialmente celdas de batería desde su instalación planificada en el sudeste asiático hasta que la planta de fabricación en EE. UU. esté operativa. La iniciativa está alineada con los incentivos de la Ley de Reducción de la Inflación de EE. UU. y se centra en el desarrollo de sistemas de baterías de alta densidad energética para vehículos todoterreno y powersports.
CBAK 에너지 기술 (NASDAQ: CBAT)와 Kandi 기술는 미국에 두 개의 리튬 배터리 생산 시설을 설립하기 위한 전략적 파트너십을 발표했습니다. 이 협력은 두 개의 합작 투자로 구성됩니다:
1. 단기 배터리 팩 조립 시설 (Kandi 소유 90%)
2. 장기 배터리 셀 제조 시설 (CBAK 소유 90%)
이 파트너십은 2024년 167억 달러로 평가되고 2030년까지 250억 달러에 이를 것으로 예상되는 북미의 오프로드 및 레크리에이션 차량 시장을 대상으로 하고 있습니다. CBAK는 미국 제조 공장이 가동될 때까지 계획된 동남아시아 시설에서 배터리 셀을 공급할 것입니다. 이 이니셔티브는 미국의 인플레이션 감축법 인센티브와 일치하며, 오프로드 및 파워스포츠 차량을 위한 고 에너지 밀도 배터리 시스템 개발에 중점을 두고 있습니다.
CBAK Energy Technology (NASDAQ: CBAT) et Kandi Technologies ont annoncé un partenariat stratégique pour établir deux installations de production de batteries au lithium aux États-Unis. Cette collaboration implique deux coentreprises :
1. Une installation d'assemblage de packs de batteries à court terme (90% détenue par Kandi)
2. Une installation de fabrication de cellules de batteries à long terme (90% détenue par CBAK)
Le partenariat vise à servir les marchés des véhicules tout-terrain et récréatifs en Amérique du Nord, évalués à 16,7 milliards de dollars en 2024 et prévus pour atteindre 25,0 milliards de dollars d'ici 2030. CBAK fournira initialement des cellules de batterie de son installation prévue en Asie du Sud-Est jusqu'à ce que l'usine de fabrication aux États-Unis soit opérationnelle. L'initiative s'aligne sur les incitations de la loi américaine sur la réduction de l'inflation et se concentre sur le développement de systèmes de batteries à haute densité énergétique pour les véhicules tout-terrain et les sports motorisés.
CBAK Energy Technology (NASDAQ: CBAT) und Kandi Technologies haben eine strategische Partnerschaft zur Errichtung zweier Lithium-Batteriefabriken in den Vereinigten Staaten angekündigt. Die Zusammenarbeit umfasst zwei Joint Ventures:
1. Eine kurzfristige Montageanlage für Batteriepacks (90% im Besitz von Kandi)
2. Eine langfristige Fertigungsanlage für Batteriezellen (90% im Besitz von CBAK)
Die Partnerschaft zielt darauf ab, die Märkte für Offroad- und Freizeitfahrzeuge in Nordamerika zu bedienen, die 2024 auf 16,7 Milliarden Dollar geschätzt werden und bis 2030 auf 25,0 Milliarden Dollar anwachsen sollen. CBAK wird zunächst Batteriezellen aus seiner geplanten Anlage in Südostasien liefern, bis das US-Produktionswerk betriebsbereit ist. Die Initiative steht im Einklang mit den Anreizen des US-Investitionsreduktionsgesetzes und konzentriert sich auf die Entwicklung von Hochenergiedichte-Batteriesystemen für Offroad- und Powersportfahrzeuge.
- Strategic entry into the U.S. market with local manufacturing capabilities
- Access to $16.7B North American off-road vehicle market with strong growth potential
- Alignment with IRA incentives for clean energy manufacturing
- 90% ownership stake in the battery cell manufacturing joint venture
- Significant capital investment required for two new facilities
- Long-term timeline for battery cell facility implementation
- Heavy dependence on initial Southeast Asian production for supply
Insights
CBAK Energy's partnership with Kandi represents a strategic manufacturing expansion that addresses multiple business imperatives simultaneously. The phased approach—establishing battery pack assembly first before full cell manufacturing—allows CBAK to establish a US foothold with lower initial capital requirements while building market presence.
This structure leverages each company's core competencies efficiently: Kandi controlling 90% of the pack assembly operation aligns with their vehicle integration experience, while CBAK maintaining 90% ownership of the future cell manufacturing preserves control over their primary technological value-add.
The interim strategy of supplying cells from a planned Southeast Asian facility demonstrates pragmatic supply chain management, creating a seamless transition pathway while navigating complex geopolitical manufacturing considerations. This approach effectively balances immediate market entry against longer-term manufacturing goals.
Establishing US production specifically addresses compliance with the Inflation Reduction Act, potentially qualifying their battery systems for significant tax incentives while mitigating trade-related risks. The decision to focus initially on off-road and recreational vehicle applications represents a sensible approach to enter the US manufacturing landscape with specialized products rather than competing immediately in the capital-intensive mass-market EV battery segment.
By creating two distinct joint venture entities with separate ownership structures, CBAK has established organizational clarity that should enhance execution efficiency while limiting cross-venture risks. This modular approach to manufacturing expansion demonstrates sophisticated global operations planning that enhances CBAK's long-term competitive positioning.
CBAK's partnership with Kandi strategically positions the company to capture value in the North American off-road vehicle battery market, projected to reach
The partnership creates a vertically integrated battery solution specifically engineered for off-road applications, which typically require different performance characteristics than passenger vehicles. By controlling both cell chemistry and pack design through their respective joint ventures, the companies can develop optimized energy solutions for UTVs, golf carts, and other recreational vehicles.
The IRA compliance strategy is particularly noteworthy, as qualifying battery systems would gain significant competitive advantages through tax incentives. However, the deliberate pace of implementation—with cell manufacturing characterized as a "longer-term initiative"—suggests careful capital allocation rather than aggressive expansion.
From a market positioning perspective, the choice to target off-road and recreational vehicles provides access to a growing segment while avoiding direct competition with major battery manufacturers focused on passenger EVs. The high energy density systems mentioned in the announcement also indicate a focus on premium performance rather than commodity production.
This partnership substantially enhances CBAK's long-term growth prospects by establishing a pathway to the US market while maintaining focus on their core technological competency in lithium battery cell design and production. The multi-regional manufacturing approach (China, Southeast Asia, and eventually US) creates operational flexibility that should improve supply chain resilience and market access.
DALIAN, China, April 14, 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, jointly with Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (“Kandi”), a global leader in new energy innovation, today announced a strategic partnership to establish two lithium battery production facilities in the United States. Both companies are currently evaluating potential locations for the facilities. The first facility, dedicated to battery pack assembly, is scheduled for near-term development. The second, focused on battery cell manufacturing, is envisioned as a longer-term initiative that Kandi and CBAK will pursue when market conditions are conducive. Each facility will be established as a separate joint venture, with distinct ownership structures designed to align with the unique objectives and scale of each project.
This partnership underscores CBAK’s long-term commitment to its global expansion strategy. As part of this vision, CBAK is actively evaluating locations outside of China to establish new battery manufacturing capabilities. In the near term, the Company, most likely, plans to launch small-scale battery cell production in a Southeast Asian country, while jointly pursuing the development of a battery cell manufacturing facility in the U.S. with Kandi as a longer-term initiative.
By building localized production capacity for both battery cells and battery packs, CBAK and Kandi aim to address the surging demand in North America’s growing off-road and recreational vehicle markets. This collaboration not only enhances supply chain resilience, but also aligns with the clean energy incentives outlined in the U.S. Inflation Reduction Act (IRA). Collectively, these efforts position both companies to navigate evolving global trade conditions, embrace localization trends, and drive sustainable long-term growth.
As part of the collaboration, two distinct joint ventures will be established. Kandi will lead the development of the battery pack assembly facilities and hold a
To ensure a seamless production ramp-up at Kandi’s battery pack facility, CBAK will supply battery cells at market rates—initially from its planned overseas production capacity in the near term, and later from its anticipated U.S.-based facility. This approach supports the creation of an integrated, end-to-end supply chain from battery cells to complete systems.
According to market reports1, the North American market for UTVs, golf carts, and other off-road vehicles was valued at
Zhiguang Hu, CEO of CBAK Energy, commented, “This collaboration with Kandi reflects our shared vision to globalize advanced battery manufacturing while adapting to the evolving U.S. market. Our expertise in cell design and production will be key to establishing a reliable local supply for emerging off-road and recreational vehicle platforms.”
Feng Chen, CEO of Kandi Technologies, commented, “This partnership with CBAK marks a strategic milestone in our North American expansion. By localizing battery cell and pack production, we’re enhancing supply chain agility and aligning with U.S. clean energy policy incentives. We are positioned to meet fast-rising demand in the off-road and recreational vehicle category, creating sustainable value for our shareholders.”
Final terms are subject to definitive agreements, and project locations and timelines may change. For more information, please refer to the official filings.
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 and sodium batteries, as well as the production of 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, energy storage 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, Shaoxing and Shangqiu, as well as a large-scale R&D and production base in Dalian.
For more information, please visit ir.cbak.com.cn
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua New Energy Vehicle Town，Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Kandi Electric Vehicles (Hainan) Co., Ltd. and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
For further inquiries, please contact:
In China:
CBAK Energy Technology, Inc.
Investor Relations Department
Email: ir@cbak.com.cn
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1 Sources: Global Market Insights, NextMSC, and Market Research Future.
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