DALIAN, China, April 14, 2025 — CBAK Energy Technology, Inc. (NASDAQ: CBAT), a prominent Chinese lithium-ion battery manufacturer and electric energy solution provider, and Kandi Technologies Group, Inc. (NASDAQ GS: KNDI), a global innovator in new energy, have announced a strategic alliance to build two lithium battery production facilities in the U.S. The companies are currently scouting potential locations. The initial facility will focus on assembling battery packs, with development planned for the near future. The second facility, which will manufacture battery cells, is a longer-term project that Kandi and CBAK will pursue based on market conditions. Each facility will operate as an independent joint venture, with ownership structures tailored to the specific goals and scale of each project.

This partnership highlights CBAK’s dedication to its global expansion strategy, which includes evaluating locations outside China for new battery manufacturing capabilities. In the short term, the Company intends to begin small-scale battery cell production in a Southeast Asian country, while also working with Kandi on the longer-term U.S. battery cell manufacturing facility.

By establishing local production of both battery cells and packs, CBAK and Kandi intend to capitalize on the increasing demand in the North American off-road and recreational vehicle markets. This collaboration strengthens the supply chain and aligns with the clean energy incentives in the U.S. Inflation Reduction Act (IRA). These combined efforts will allow both companies to adapt to changing global trade conditions, embrace localization trends, and promote sustainable long-term growth.

The collaboration will involve the creation of two separate joint ventures. Kandi will spearhead the development of the battery pack assembly facilities, holding a 90% equity stake in that venture. CBAK will lead the battery cell manufacturing facilities, retaining a 90% equity stake in its respective joint venture. Utilizing their individual expertise, the two companies will jointly create advanced, high energy density battery systems designed to meet the specific performance needs of off-road and powersports vehicles.

To ensure a smooth production start-up at Kandi’s battery pack facility, CBAK will supply battery cells at market prices—initially from its planned overseas production capacity and subsequently from its future U.S.-based facility. This will foster 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 $16.7 billion in 2024 and is expected to reach around $25.0 billion by 2030. The partnership is well-positioned to secure a significant share of the battery needs within this growing market.

Zhiguang Hu, CEO of CBAK Energy, stated, “This collaboration with Kandi demonstrates our shared vision of globalizing advanced battery manufacturing while adapting to the evolving U.S. market. Our expertise in cell design and production will be critical in establishing a reliable local supply for emerging off-road and recreational vehicle platforms.”

Feng Chen, CEO of Kandi Technologies, commented, “This partnership with CBAK is a strategic milestone in our North American expansion. By localizing battery cell and pack production, we are improving supply chain agility and aligning with U.S. clean energy policy incentives. We are positioned to address the rapidly increasing demand in the off-road and recreational vehicle category, thereby creating sustainable value for our shareholders.”

The final terms are contingent upon definitive agreements, and project locations and timelines are subject to change. For further details, please consult the official filings.

About CBAK Energy
CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading high-tech enterprise in China focused on the development, manufacturing, and sales of new energy high power lithium and sodium batteries, as well as the production of raw materials used in manufacturing high power lithium batteries. The Company’s products and solutions are used in electric vehicles, light electric vehicles, energy storage and other high-power applications. CBAK Energy became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market in January 2006. CBAK Energy has several operating subsidiaries in Dalian, Nanjing, Shaoxing and Shangqiu, and 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), located in Jinhua New Energy Vehicle Town, Zhejiang Province, is involved 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 become a leading manufacturer of pure electric vehicle parts and off-road vehicles in China.

For further inquiries, please contact:

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CBAK Energy Technology, Inc.
Investor Relations Department
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¹ Sources: Global Market Insights, NextMSC, and Market Research Future.

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